Mr. Francis Letourneau reports
NURAN PROVIDES CORPORATE UPDATE
Nuran Wireless Inc. has provided a corporate update on the European Investment Bank (EIB) senior credit facility of $18-million (U.S.) approved on Oct. 6, 2022, and the DFI senior credit facility of eight million euros approved on July 12, 2022, totalling approximately $27-million (U.S.).
During the entire month of December 2022, NuRAN management was focused on finalizing the loan facilities and the expectation was for the signature of the definitive loan agreements before the end of the calendar year. However, there are two outstanding items which are deliverables from third parties. Subject to EIB's review, the first item is a telecom license required for NuRAN to operate in the DRC. This follows a recent change of law requiring the local entity, in this case NuRAN Wireless DRC, to file an additional application. NuRAN expects the license to be issued as soon as the regulator's office reopens after the holiday break.
The second item is a letter from the Ministere des Finances of the DRC consenting to the granting of the loan for the purposes of the Cotonou Agreement and accordingly the undertakings of the DRC in Article 6 of Annex II of the Cotonou Agreement, a treaty between the European Union and the African, Caribbean and Pacific group of states, with regard to exchange control and tax exemptions relating to the Investment. The letter has been requested by officials of the European Union operating in the DRC and shall be received shortly. NuRAN is awaiting final confirmation of delivery of the document.
While the definitive loan agreements are being signed, the Company has been working on completing the final conditions precedent to the first drawdown against the US$ 27M debt facilities. The NuRAN team is also in the final stages of preparing the initial drawdown request which is to be applied towards the deployment of up to 242 NaaS sites in Cameroon and 850 sites in the DRC. This includes initial purchase orders for third party equipment that will complement NuRAN's radio access technology in delivering connectivity in rural areas. Over 100 sites have been deployed in both countries and the financing will rapidly accelerate the continued build out of sites throughout 2023. While the definitive loan agreements are being finalized, NuRAN's operations team have focused their efforts on delivering the accelerated rollout plan by acquiring site locations and performing Environmental and Social Impact Assessments (ESIA). Once completed, NuRAN's local team and its partners will mobilize to deploy in-country inventories enabling them to rapidly reach 250 sites.
Leading up to the execution of the Loan Facilities, and to bridge the Company's short-term working capital needs until the draw down, the Company has, over the past few months, borrowed a total of CAD $1.6M of short-term bridge loans, which have a maturity date of March 31, 2023. In addition, as part of fulfilling the customary conditions of the Loan Facilities and leading up to their signature, the holders of convertible debentures issued by the Company on August 22, 2022 and the lenders of the short-term bridge loans have agreed to waive parts of their rights, including those relating to events of defaults pursuant to those agreements in favor of EIB.
About EIB:The European Investment Bank (EIB) is the lending arm of the European Union. They are the biggest multilateral financial institution in the world and one of the largest providers of climate finance. The EIB's activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure, and cohesion. The EIB works closely with other EU institutions to foster European integration, promote the development of the EU and support EU policies in over 140 countries around the world.
About NuRAN Wireless:NuRAN 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 offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and affordably. "Bridging the Digital Divide, One Connection at a Time."Additional Information:For further information about NuRAN Wireless: www.nuranwireless.comFrancis Letourneau, Director and CEO Francis.firstname.lastname@example.orgTel: (418) 264-1337
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