Ottawa-based DragonWave (TSX:DWI) has announced an underwritten public offering of 11.9 million units, worth US$25 million.
The units, priced at US$2.10 each, will include one common share and three-quarters of one warrant. Each full warrant will allow holders to purchase one common share at a price of $2.70 for five years from the issue’s closing date of Sept. 23.
The warrants will not be listed on the Toronto Stock Exchange or NASDAQ.
DragonWave, which specializes in microwave radio systems used in mobile networking, said it intends to use “proceeds from the offering to strengthen its balance sheet, to fund working capital and for general corporate purposes,” in a corporate release.
Shares in DragonWave were down on both sides of the border by mid-morning, dropping three cents on the TSX to $2.04 a share and five cents on the NASDAQ to US$1.97 a share, at 10:40 a.m.