US$10 millio facility f om suppo ti g sha eholde g oup p ovides a o -equity alte ative fo wo ki g capital a d towe co st uctio , subject to its te ms No -co ve tible facility co tai s o co ve sio ights, wa a ts, equity kicke , payme t-i -sha es p ovisio s o othe equity-li ked featu es No sha es have bee sold u de the At-The-Ma ket equity p og am (“ATM”) Ma ageme t believes the sha e p ice does ot adequately eflect NuRAN’s deployed towe s, site eco omics a d co t acted g owth oppo tu ity
NuRAN is also co fi mi g that to date o commo sha es have bee sold u de the Compa y’s at-the-ma ket equity p og am (the “
“We have hea d sha eholde s’ co ce s about dilutio . We have ot sold a si gle sha e th ough the ATM, a d we a e ot usi g it at cu e t p ices. I ou view, today’s sha e p ice does ot adequately eflect the towe s we have deployed, the eco omics of ou sites o the co t acted oppo tu ity ahead of us. Ou p io ity is to fi a ce the build-out of eve ue-ge e ati g i f ast uctu e o te ms that make se se fo NuRAN a d its sha eholde s- ot issue equity at p ices we believe fail to eflect the value of the busi ess,” said F a cis Létou eau, P eside t a d Chief Executive Office of NuRAN Wi eless.
“This US$10 millio facility gives us a o -equity fu di g alte ative to suppo t that app oach. It ca ies o co ve sio ights, wa a ts o othe equity-li ked featu es. Ou focus emai s o putti g capital to wo k i additio al towe s, expa di g ecu i g eve ue a d adva ci g towa d positive cash flow f om ope atio s. Based o ou cu e t deployme t pla a d cash-flow fo ecast, we expect the facility capacity, togethe with ope ati g cash flows a d othe available fu di g sou ces, to p ovide the u way to build the 125 additio al towe s we believe a e equi ed to achieve, at a mi imum, positive cash flow f om ope atio s.”
No ATM Sales. The Compa y has eithe issued o sold a y commo sha es u de the ATM.ATM ot i use at cu e t ma ket levels. I light of the US$10 millio Facility a d ma ageme t’s assessme t of the Compa y’s u de lyi g value, ma ageme t does ot co side the ATM to be a app op iate o ecessa y sou ce of capital i cu e t ma ket co ditio s. The Compa y has o sta di g i st uctio s to sell sha es u de the ATM.No -dilutive US$10 Millio Facility . The US$10 millio Facility co tai s o co ve sio ights, wa a ts, equity kicke , payme t-i -sha es p ovisio s o othe equity-li ked featu es. Adva ces u de the facility will ot esult i the issua ce of commo sha es o dilutio to existi g sha eholde s.
No commo sha es have bee sold u de the ATM. Followi g the closi g of the US$10 millio Facility, ma ageme t has dete mi ed that o sales will be made u de the ATM i cu e t ma ket co ditio s, a d the Compa y has o sta di g i st uctio s to sell sha es u de the p og am. Ma ageme t believes the cu e t ma ket p ice does ot eflect NuRAN’s u de lyi g value, havi g ega d to, amo g othe thi gs, towe s deployed a d ope ati g, co t acted sites, site-level eco omics, the Compa y’s deployme t pipeli e a d the expected co t ibutio of additio al eve ue-ge e ati g sites. The ATM has ot bee te mi ated o withd aw a d emai s available fo futu e fi a cial flexibility. A y futu e use would be co side ed o ly if ma ageme t dete mi es, i light of the Compa y’s capital equi eme ts a d the -p evaili g p ice, t adi g volume a d ma ket co ditio s, that sales would be i the best i te ests of the Compa y a d its sha eholde s.
The US$10 millio Facility has a maximum p i cipal capacity of US$10 millio a d may be used fo ge e al wo ki g capital a d towe co st uctio u til Ja ua y 1, 2028, u less exte ded by mutual ag eeme t. The Compa y may equest adva ces f om time to time based o its liquidity, ope atio al equi eme ts a d deployme t schedule, subject to the fu di g co ditio s, limitatio s a d Le de ights i the defi itive c edit ag eeme t.
Based o ma ageme t’s cu e t deployme t pla a d cash-flow fo ecast, ma ageme t expects the maximum facility capacity, togethe with ope ati g cash flows a d othe available fu di g sou ces, to be sufficie t to complete the 125 additio al towe s it cu e tly estimates a e equi ed fo the Compa y to achieve positive cash flow f om ope atio s. This assessme t depe ds o fu di g bei g available whe eeded, co st uctio a d activatio p oceedi g as pla ed, a d ope ati g sites ge e ati g the eve ue a d cash collectio s fo ecast.
The facility is secu ed by a fi st- a ki g ge e al secu ity ag eeme t g a ted by the Compa y a d ce tai of its o -Af ica subsidia ies. The secu ity excludes the Compa y’s Af ica ope ati g subsidia ies, thei assets a d the equity i te ests i those subsidia ies.
The US$10 millio Facility is o -co ve tible a d o -dilutive: it co tai s o co ve sio ights, wa a ts, equity kicke , payme t-i -sha es p ovisio s o othe equity-li ked featu es. No commo sha es o othe equity secu ities a e issuable to the Le de u de the facility, a d adva ces u de it will ot dilute existi g sha eholde s.
The facility is sepa ate f om the p oposed additio al US$2 millio of fi a ci g f om the Facility fo E e gy I clusio , a fu d ma aged by Cyg um Capital, which the Compa y expects to a ou ce sho tly.
NuRAN Wi eless I c. (Nasdaq:NUR)(FSE:1RN) is a u al telecommu icatio s i f ast uctu e compa y co ecti g emote a d u de se ved commu ities ac oss Af ica. Th ough its Netwo k-as-a-Se vice model, NuRAN fi a ces, builds, ow s, ope ates a d mai tai s 2G, 3G a d 4G mobile etwo k i f ast uctu e fo mobile etwo k ope ato s seeki g to expa d cove age outside u ba ma kets.
NuRAN has mo e tha 5,000 sites u de co t act, of which a po tio has bee built a d is ope ati g today. The Compa y combi es telecommu icatio s e gi ee i g, low-powe wi eless tech ology, e ewable-e e gy-e abled i f ast uctu e, site selectio a d field ope atio s to add ess the eco omic a d tech ical challe ges of u al mobile cove age.
Fo fu the i fo matio about NuRAN Wi eless: www. u a wi eless.com
F a cis Létou eauDi ecto a d CEOF a cis.letou eau@ u a wi eless.comTel: (418) 264-1337
This ews elease co tai s “fo wa d-looki g i fo matio ” u de applicable Ca adia secu ities laws a d “fo wa d-looki g stateme ts” u de applicable U ited States secu ities laws (collectively, “fo wa d-looki g stateme ts”). Stateme ts othe tha stateme ts of histo ical fact may be fo wa d-looki g stateme ts. Wo ds such as “a ticipates,” “believes,” “could,” “expects,” “i te ds,” “may,” “pla s,” “p oposed,” “should,” “will,” “would” a d simila exp essio s ide tify some, but ot all, fo wa d-looki g stateme ts. No efe e ce i this ews elease to fo wa d-looki g stateme ts is i te ded to claim p otectio u de a y U.S. statuto y safe ha bou whe e that p otectio is u available.
Fo wa d-looki g stateme ts i this ews elease i clude stateme ts co ce i g: the Compa y’s cu e t view that, as a esult of havi g secu ed the US$10 millio Facility a d at the cu e t ma ket p ice of the Compa y’s commo sha es, the ATM is ot p ese tly a app op iate o ecessa y sou ce of capital; ma ageme t’s p ese t dete mi atio ot to make ATM sales i cu e t ma ket co ditio s; the facto s ma ageme t may co side i a y futu e use of the ATM; the availability, maximum capacity, timi g, f eque cy a d amou ts of a y adva ces equested o fu ded u de the US$10 millio Facility, i cludi g ma ageme t’s expected disc etio to equest adva ces f om time to time as fu di g eeds a ise; the capacity a d willi g ess of the Le de to fu d adva ces; the use of adva ces fo wo ki g capital a d towe co st uctio ; the expected ope ati g a d deployme t ho izo p ovided by the US$10 millio Facility; the umbe a d timi g of additio al towe builds; the effect of additio al towe builds o eve ue, ope ati g cash flow a d the Compa y’s ability a d timi g to achieve positive cash flow; the sufficie cy of the maximum facility capacity, togethe with ope ati g cash flows a d othe available fu di g sou ces, to complete the towe builds ma ageme t believes a e equi ed to achieve positive cash flow; the o -co ve tible a d o -dilutive atu e of the US$10 millio Facility a d the abse ce of co ve sio ights, wa a ts, equity kicke , payme t-i -sha es p ovisio s o othe equity-li ked featu es; the a ticipated additio al US$2 millio of Cyg um-ma aged fi a ci g a d the timi g of its a ou ceme t; the p oposed US$12 millio AFRIGREEN se io p oject fi a ci g; a d the completio , timi g a d te ms of those fi a ci gs.
Fo wa d-looki g stateme ts a e based o ma ageme t’s cu e t pla s, estimates, expectatio s a d assumptio s as of the date of this ews elease. Mate ial assumptio s i clude that: ma ageme t mai tai s its p ese t dete mi atio ot to make ATM sales i cu e t ma ket co ditio s; the Compa y’s assessme t of its fi a ci g equi eme ts a d ma ket co ditio s does ot cha ge mate ially; the Le de has a d mai tai s the capacity a d willi g ess to fu d adva ces i acco da ce with the defi itive ag eeme t; the Compa y satisfies the applicable equi eme ts fo each equested adva ce a d ma ageme t’s a ticipated timi g a d amou ts of d aw equests alig with the Compa y’s fu di g eeds; the US$10 millio Facility emai s i effect a d adva ces a e available whe equi ed; p oceeds a e deployed as pla ed; towe co st uctio is completed o budget a d o schedule; completed towe s become ope atio al a d ge e ate eve ue a d cash flow i the amou ts a d withi the pe iods fo ecast; a ticipated custome collectio s a d othe ope ati g eceipts a e eceived i the amou ts a d at the times fo ecast; ope ati g, deployme t, fi a ci g a d othe expe ditu es occu substa tially as fo ecast; the facility’s maximum capacity, ope ati g cash flows a d othe available fu di g sou ces a e sufficie t to complete the additio al towe builds ma ageme t believes a e equi ed fo the Compa y to achieve positive cash flow; the US$10 millio Facility co ti ues to co tai o co ve sio ights, wa a ts, equity kicke , payme t-i -sha es p ovisio s o othe equity-li ked featu es; a d the additio al Cyg um-ma aged fi a ci g a d the p oposed US$12 millio AFRIGREEN fi a ci g p oceed o the timi g a d te ms expected.
Actual esults may diffe mate ially f om those exp essed o implied by fo wa d-looki g stateme ts because of isks a d u ce tai ties, i cludi g: cha ges i the Compa y’s fi a ci g equi eme ts, ma ket co ditio s o the ma ket p ice of its commo sha es; a y futu e use of the ATM, which could esult i equity dilutio ; le de fu di g, c edit a d cou te pa ty isk; limits o the timi g, f eque cy o amou t of adva ces, the possibility that equested adva ces will ot be fu ded a d the isk that the full US$10 millio maximum facility capacity is ot immediately o ultimately available o d aw ; defaults, te mi atio ights o othe est ictio s u de the defi itive ag eeme t; delays, cost ove u s, pe mitti g, logistics, powe , secu ity, egulato y, political, ope atio al a d othe isks affecti g towe co st uctio a d activatio ; lowe o delayed eve ue, custome collectio s o ope ati g eceipts f om existi g o ew towe s; highe o accele ated ope ati g, deployme t, fi a ci g, debt-se vice o othe costs; fo eig -excha ge moveme ts; the isk that the Compa y builds fewe towe s tha pla ed o does ot achieve positive cash flow whe expected o at all; the isk that the additio al Cyg um-ma aged fi a ci g o the p oposed US$12 millio AFRIGREEN fi a ci g is delayed, completed o diffe e t te ms o ot completed; the eed to obtai additio al fi a ci g soo e tha a ticipated a d the isk that such fi a ci g is u available o available o ly o u favou able o dilutive te ms; a d the Compa y’s b oade ope atio al, egulato y, political, secu ity, capital-ma kets a d Nasdaq complia ce isks.
The US$10 millio amou t is the maximum p i cipal capacity of the US$10 millio Facility a d does ot ep ese t cash o ha d o a amou t that is immediately available o d awable i full. The Compa y expects to equest adva ces f om time to time as ma ageme t dete mi es fu di g is equi ed, athe tha ecessa ily d awi g the full commitme t at o ce. The timi g a d amou t of a y adva ce will depe d o the Compa y’s fu di g equi eme ts a d the defi itive ag eeme t, i cludi g applicable fu di g p ocedu es, co ditio s, limitatio s a d le de ights. The US$10 millio Facility is debt fi a ci g a d is subject to i te est, fees, epayme t obligatio s a d othe le de p otectio s.
The e ca be o assu a ce that the Le de will fu d a y pa ticula adva ce; that a y pa ticula amou t, i cludi g the maximum US$10 millio capacity, will be available o d aw ; that the US$10 millio Facility will emai available fo the pe iod expected; that the maximum facility capacity, ope ati g cash flows a d othe fu di g sou ces will be sufficie t to co st uct the pla ed umbe of towe s; that towe co st uctio will be completed as pla ed; that completed towe s will ge e ate the a ticipated eve ue o cash flow; that the Compa y will achieve positive cash flow withi the a ticipated pe iod o at all; that the additio al Cyg um-ma aged fi a ci g o the p oposed US$12 millio AFRIGREEN fi a ci g will be completed o the timi g a d te ms expected o at all. The Compa y may elect to make sales u de the ATM i the futu e if ma ageme t dete mi es that the Compa y’s capital equi eme ts a d the -p evaili g p ice, t adi g volume a d ma ket co ditio s make such sales app op iate, a d a y such sales could esult i equity dilutio . Reade s should ot place u due elia ce o fo wa d-looki g stateme ts. Fo wa d-looki g stateme ts speak o ly as of the date of this ews elease. Additio al isks a d u ce tai ties a e desc ibed i the Compa y’s fili gs with the U.S. Secu ities a d Excha ge Commissio a d Ca adia secu ities egulato s, available o EDGAR at www.sec.gov a d o SEDAR+ at www.seda plus.ca. The Compa y u de takes o obligatio to update o evise fo wa d-looki g stateme ts except as equi ed by applicable law.
This ews elease does ot co stitute a offe to sell o a solicitatio of a offe to buy secu ities i a y ju isdictio , o a offe , solicitatio o sale i a y ju isdictio whe e it would be u lawful.
View the o igi al p ess elease o ACCESS Newswi e
