Stock Update (NASDAQ:DRWI): DragonWave, Inc. (USA) Closes C$4.35 Million Registered Direct Offering
DragonWave, Inc.(USA) (NASDAQ:DRWI), a leading global supplier of packet microwave radio systems for mobile and access networks, has closed a registered direct offering previously announced on April 7, 2016.
Under the offering, the Company issued 599,998 Common Shares in a Registered Direct Offering, and concurrently in a private placement, issued warrants to purchase 299,999 Common Shares exercisable in the future at an exercise price of US$8.50. The price per common share and half of a warrant was US$7.25 and resulted in total gross proceeds to the Company of US$4.35 million.
The net proceeds of the Offering, before expenses, were approximately US$4.0 million. The Company expects that any exercise of the Warrants will result in the cash proceeds from the exercise of such Warrants being paid to the Company.
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. (Original Source)
Shares of Dragonwave closed yesterday at $5.93, down $0.81 or -12.02%. 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 $3.38 and its 200-day moving average is $2.99.
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. The principal application of DragonWave’s products is wireless network backhaul. Its additional solutions include leased line replacement, last mile fiber extension and enterprise networks. The company was founded by Erik Boch and Dave Farrar on February 24, 2000 and is headquartered in Ottawa, Canada.