An Ottawa firm that makes technology designed to expand the capacity of Wi-Fi networks is looking to raise up to $1.5 million in an effort to expand its R&D and marketing activities.
Edgewater Wireless said Tuesday it’s selling up to 30 million units at a price of five cents each consisting of one common share, one series-A warrant and one series-B warrant. Two series-A warrants can be exercised within two years to acquire one common share at a price of 10 cents, while two series-B warrants exercised within three years entitle the buyer to one common share at a price of 20 cents.
The company said about half of the funds raised through the private placement are expected to go toward product development. About a quarter of the proceeds are currently earmarked for sales and marketing and the rest is expected to be used for working capital.
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The Ottawa Hospital’s Campaign to Create Tomorrow enters important next phase
For Ginger Bertrand, some of her earliest childhood memories in Ottawa are centred around healthcare. “I grew up across the street from what was originally the General Hospital,” she explains,
The Ottawa Hospital’s Campaign to Create Tomorrow enters important next phase
For Ginger Bertrand, some of her earliest childhood memories in Ottawa are centred around healthcare. “I grew up across the street from what was originally the General Hospital,” she explains,
The new funding push comes as Edgewater hopes to cash in on the growing need for reliable wireless networks.
The company is developing “dual-channel” Wi-Fi technology that provides dedicated download channels. Adding dedicated download channels for services with high-bandwidth demands is a more efficient use of Wi-Fi spectrum – something Edgewater officials liken to turning a single-lane road into a multi-lane highway.
In regulatory filings accompanying Edgewater’s third-quarter financial statements in April, the company said efforts to contain the COVID-19 pandemic are having a “profound” impact on cable operators and consumers, and networks are being “pushed to do more” with so many households adding devices to their Wi-Fi networks so individuals can work and study from home.
But Edgewater also said it continues to face supply line disruptions caused by “yield issues on silicon” – that is, problems with output levels from its semiconductor chips – and that addressing the issue would require the company to secure additional capital.
The development-stage company reported a quarterly loss of $349,000 in the three-month period that ended Jan. 31, down from a loss of $813,100 recorded a year earlier. Edgewater is expected to announce its fourth-quarter and full-year fiscal 2020 results later this month.
