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 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.