Mr. Francis Letourneau reports
NURAN ANNOUNCES CLOSING OF CONVERTIBLE DEBENTURE OFFERING AND FINANCING UPDATE
Nuran Wireless Inc. has closed a non-brokered private placement of convertible debentures with a strategic investor for aggregate gross proceeds of $2-million.
The convertible debenture has an original issuance discount of 10 per cent and the principal of $2,222,222 is convertible into common shares of the company at a fixed price of $1.35 at the option of the debentureholder during the term of the convertible debenture. Under the terms of the convertible debenture the principal amount is due one year from the date of closing and does not bear interest until the maturity date or an event of default occurs. In connection with the issuance of the convertible debenture the investor received 1,481,481 share purchase warrants, with each warrant exercisable to acquire one common share of the company at an exercise price of $2 for a period of 24 months from the date of closing. The debentures may be prepaid by the company at any time prior to the maturity date, upon 10 business days notice to the debentureholder, subject to the company paying a price equal to 103 per cent of the principal amount of the debentures then outstanding plus accrued and unpaid interest thereon. As a condition of closing of the offering, Nuran entered into a sales agreement with the subscriber pursuant to which Nuran agreed to engage the subscriber as its exclusive transmission equipment provider for a term of the earlier of seven years or until such time as the company completes the purchase of a committed volume of equipment for its African operations.
The company intends to use the net proceeds from the offering for working capital purposes, to finance its purchases under the sales agreement and for capital expenditures under the company's NaaS (network-as-a-service) agreements. The convertible debenture and warrants, and any securities issuable upon conversion or exercise thereof, will be subject to a statutory holder period of four months and one day from the issuance of the convertible debenture.
Nuran is also pleased to report significant progress in its various financing initiatives. In connection with the previously announced loan facilities with development finance institutions (DFIs) in the amount of up to $27-million (U.S.), the company has been formally advised by one of the DFIs that, after a detailed appraisal of the operations of the company, all internal approvals have been received, and the DFI confirmed that following completion of all recent equity and bridge financings by Nuran, including the financing completed with Space-Communication Ltd., the company has met the preclosing fund raising condition of $6-million (U.S.) required for the drawdown of the first tranche of the loan facilities. The final loan facility is subject to the completion of due diligence and the entry into definitive loan documents with the DFIs which are in progress.
The company also wishes to announce that it has determined not to proceed with the second tranche of the previously announced bridge financing consisting of an unsecured convertible debenture facility in the principal amount of up to $15-million announced on March 16, 2022.
About Nuran Wireless Inc.
Nuran Wireless is a leading rural telecommunications company that meets the growing demand for wireless network coverage in remote and rural regions around the globe. With its affordable and innovative scalable solutions of 2G, 3G and 4G technologies, Nuran Wireless offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and affordably.
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