20:37:44 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



TeraGo Inc
Symbol TGO
Shares Issued 14,415,292
Close 2018-05-29 C$ 5.75
Market Cap C$ 82,887,929
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TeraGo arranges $6-million bought deal

2018-05-29 16:37 ET - News Release

Mr. Dennis Fong reports

TERAGO ANNOUNCES BOUGHT DEAL OFFERING OF COMMON SHARES

TeraGo Inc. has entered into an agreement with a syndicate of underwriters, led by TD Securities Inc., under which the underwriters have agreed to buy on a bought-deal basis an aggregate of 1,133,000 common shares, at a price of $5.30 per share for gross proceeds of $6-million. TeraGo has granted the underwriters an overallotment option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the total number of shares sold under the offering to cover overallotments, if any. If the overallotment option is exercised in full, the gross proceeds will be approximately $6.9-million.

The company intends to use the net proceeds of the offering to finance the acquisition of additional spectrum (as discussed below), the associated costs of the acquisition and for general corporate purposes.

The company currently has a number of subordinated 24-gigahertz spectrum licences (as identified below) issued pursuant to a lease with a third party. TeraGo intends on exercising a purchase option it has within the lease to acquire the 24-gigahertz subordinated licences for an aggregate purchase price of $5.7-million, subject to Innovation, Science and Economic Development's (ISED) approval.

Geographic Tier 3 area    Total MHz         MHz-Pop (1)    
 
Calgary                          80     111,218,240
Edmonton                         80     117,127,040
Montreal                        160     672,776,000
Ottawa                          160     230,851,520
Toronto                         160   1,063,400,000
Vancouver                       320     859,044,800
Total                           960   3,054,417,600

(1) Based on ISED's population figures for 2011.

On or before June 4, 2018, the company will file with the securities commissions or similar regulatory authorities in all of the provinces of Canada, a preliminary short-form prospectus relating to the issuance of the shares. The offering is anticipated to close on or about June 18, 2018, and is subject to certain customary conditions and regulatory approval, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

About TeraGo Inc.

TeraGo provides businesses across Canada with cloud, co-location and connectivity services. TeraGo manages over 3,000 cloud workloads, operates five data centres in the Greater Toronto Area, the Greater Vancouver Area and Kelowna, and owns and manages its own IP network. The company serves business customers in major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg. TeraGo Networks is a competitive local exchange carrier (CLEC) and was recognized by IDC as a major player in MarketScape cloud vendor assessment.

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