Company Update (NASDAQ:DRWI): DragonWave, Inc. (USA) Announces $4.35 Million Registered Direct Offering
DragonWave, Inc. (USA) (NASDAQ:DRWI), a leading global supplier of packet microwave radio systems, today announced it is raising approximately US$4.35 million in gross proceeds in a registered direct offering and a concurrent private placement to institutional investors in the United States.
The Company is selling approximately 600,000 Common Shares in the registered direct offering. Concurrently in a private placement, the Company is issuing warrants to purchase approximately 300,000 Common Shares at an exercise price of US$8.50 per share, subject to certain standard adjustments, which warrants are not exercisable for six months and one day from issuance and will expire five years from the date of issuance. The price per common share and half of a warrant is $7.25.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC is acting as the exclusive placement agent for the registered direct offering and concurrent private placement. The closing of the registered direct offering and the concurrent private placement is expected to take place on or about April 11, 2016, subject to the satisfaction of customary closing conditions. (Original Source)
Shares of Dragonwave are falling nearly 12% to $7.75 in pre-market trading. DRWI has a 1-year high of $19.75 and a 1-year low of $1.40. The stock’s 50-day moving average is $2.89 and its 200-day moving average is $2.97.
DragonWave, Inc. provides packet microwave solutions that drive next-generation IP networks. Its carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements.