Mr. Francis Létourneau reports
NURAN RECEIVES US $1.41M PURCHASE ORDER AND PROVIDES CORPORATE UPDATE
Nuran Wireless Inc. has received a $1.41-million (U.S.) purchase order from the Marshall Islands National Telecommunication Authority to extend and to add 4G coverage to its existing network, which Nuran deployed during 2021 and 2022.
This purchase order was made based on a more traditional capex (capital expenditure) model, as opposed to network-as-a-service (NaaS); the same basis as the previous deployment.
The purchase order includes:
- Litecell xG and Litecell 1.5 to run a 2G/3G/4G network simultaneously;
- Additional sites including towers and power systems;
- Installation and continuing support;
- Deployment in mid to late 2023.
Nuran is also pleased to announce that it has completed its application to list its common shares on the OTCQB Venture Market. The OTCQB is a United States trading platform that is operated by the OTC Markets Group in New York; it is the premier marketplace for early-stage and developing U.S. and international companies. To be eligible for quotation on the OTCQB, companies must be current in their reporting and undergo an annual verification and management certification process. Companies must also meet a minimum bid price test and other financial conditions. Recognized by the U.S. Securities and Exchange Commission as an established public market, the OTCQB provides investors who cannot access trading on the CSE (Canadian Securities Exchange) with an alternative access to the company's shares though regulated U.S. broker-dealers. Nuran will update its shareholders once the company has been approved for trading on this market.
The company is already approved for Depository Trust & Clearing Corp. full-service eligibility in the U.S. Its shares are qualified to be held at the Depository Trust Company (DTC) and traded and serviced through DTC's electronic book-entry system. DTC is a subsidiary of the DTCC, an American company that provides clearing and settlement services for the financial markets and settles the majority of securities transactions in the United States.
DFI financing update, including European Investment Bank
As previously disclosed, the company is in the final stages of securing its $27-million (U.S.) non-dilutive financing with the European Investment Bank and one other Development Finance Institution (DFI). To date, all conditions precedent to signing definitive documentation have been satisfied with the exception of obtaining the authorizations required for Nuran to operate in the DRC, subject to European Investment Bank's review. In addition, the company has been working diligently to satisfy the conditions precedent to drawdown of this financing; management expects that all conditions will be satisfied within the coming weeks, with financing anticipated in March, 2023.
Nuran is also pleased to announce that has finalized negotiations with the holders of secured debentures issued in August, 2022. The debenture holders have agreed to extend the maturity for a further six months to August, 2023, and waive certain rights pursuant to the debentures, including relating to events of default in favour of European Investment Bank and the other DFI. As consideration to these debenture holders, the company has entered into debt settlement agreements pursuant to which the prior secured debentures and related security agreements from August, 2022, were cancelled and the company agreed to issue the following: (i) secured convertible debentures (the "New Debentures") in the aggregate principal amount of $2,975,914 (inclusive of all advances, accrued interest and fees) with a conversion price of 42 cents per common share; and (ii) an aggregate of 750,000 bonus shares, which are subject to a four-month hold. The new debentures do not bear interest until maturity. There is no change to the warrants issued in August, 2022.
Nuran is also pleased to announce that it is finalizing negotiations with the lenders of short-term bridge loans, as previously disclosed, in the amount of $2.4-million, which is expected to result in the extension of the maturity on those loans and have agreed to enter into debt settlement agreements on substantially similar terms as the debenture holders. The company expects to enter into these agreements concurrently with the signing of the definitive agreements with European Investment Bank and the other DFI. The company expect to have access to the necessary cash to bridge its operations until drawdown of the DFI loan facilities and may raise up to an additional $1.5-million of new debentures in the coming weeks.
About Nuran Wireless Inc.
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."
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