DragonWave, Inc. (USA) (NASDAQ:DRWI), a leading global supplier of packet microwave radio systems for mobile and access networks, announced today that, on January 26, 2016, it will hold a special meeting of shareholders (the “Special Meeting”) to consider, and if deemed appropriate, to approve, a special resolution to authorize an amendment of the Company’s articles to consolidate the common shares of the Company. The range of ratios for the share consolidation will be set out in the Management Information Circular (the “Circular”) to be mailed to shareholders on or about December 21, 2015. The record date for the Special Meeting is December 11, 2015. At the Special Meeting, shareholders may also be asked to consider and vote in respect of other matters that may be properly brought before the Special Meeting. Management is not currently aware of any such other matters.
The Company is seeking authority to implement a share consolidation as it will provide the Company with an opportunity to avoid a potential delisting of its Common Shares from NASDAQ, on which they are currently listed and quoted for trading in the United States. Subject to the approval of the Toronto Stock Exchange, approval of the special resolution by shareholders would give the Board of Directors the authority to implement the share consolidation, or, in its discretion, revoke to the special resolution, without further approval or action or prior notice to shareholders. If approved and implemented, the share consolidation will occur simultaneously for all of the Company’s common shares and will affect all shareholders uniformly.
As previously announced on September 1, 2015, in connection with the transfer of the common shares of the Corporation from The NASDAQ Global Market to The NASDAQ Capital Market, the Company was granted until February 29, 2016 to regain compliance with the minimumUS$1.00 bid price per share requirement of NASDAQ. In order to regain compliance with the US$1.00 per share bid price requirement, the Company’s common stock must close at US$1.00 per share or more for a minimum of 10 consecutive business days (subject to being increased to 20 consecutive business days at the discretion of NASDAQ’s Staff) prior to February 29, 2016. If the Company cannot demonstrate compliance with this requirement by February 29, 2016, or it does not comply with the terms of the extension granted by theNASDAQ Staff, the Company’s common stock may then be subject to delisting.
The Circular will contain, among other things, details concerning the proposed share consolidation, requirements for the share consolidation to be implemented and the procedure for receiving new shares if the share consolidation is implemented, as well as the procedures for voting at the meeting and other related matters. Shareholders are urged to carefully review the Circular and accompanying materials as they will contain important information regarding the share consolidation. (Original Source)
Shares of Dragonwave closed today at $0.1285, down 0.0088 or 6.41%. DRWI has a 1-year high of $1.18 and a 1-year low of $0.07. The stock’s 50-day moving average is $0.12 and its 200-day moving average is $0.31.
DragonWave Inc is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. Its products are wireless network backhaul equipment.