Edgewater Closes First Tranche of $0.13 Financing

Rhea-AI Summary

Edgewater Wireless Systems (KPIFF) has completed the first tranche of its non-brokered private placement, raising $1,258,555 through the issuance of 9,681,189 units. Each unit consists of one common share and a warrant exercisable at $0.23 for 24 months. The proceeds will support operating expenses, product development, and working capital. A second tranche is expected to close in mid-April for around $88,000. The offering includes related party transactions that comply with TSX Policy exemptions.

Positive

• Successfully raised $1,258,555 from the first tranche of private placement.
• Proceeds allocated for critical areas including product development (673,954).
• Anticipation of further capital from the second tranche.

Negative

• None.

Edgewater Wireless Systems Inc. (YFI: TSX.V) (OTCQB: KPIFF), the industry leader in Wi-Fi Spectrum Slicing technology for residential and commercial markets, is pleased to announce that the first tranche of its $0.13 non-brokered private placement announced on March 18, 2021 (the “Offering”) has closed (see news releases dated March 18 and March 30, 2021). In the first tranche closing, the Company issued 9,681,189 units (each a “Unit”) for total proceeds of $1,258,5554.83. Each Unit is comprised of one common share (a “Share”) and one warrant (a “Warrant”) of the Company. Each Warrant entitles the holder to acquire one additional Share of the Company at an exercise price of $0.23 for twenty-four (24) months following the closing of the Offering.

It is anticipated that the second tranche of the Offering, for aggregate proceeds of approximately $88,000, will close in mid-April 2021 and that the second tranche of the Company’s $0.115 financing (see news releases dated March 12 and March 30, 2021), for aggregate proceeds of approximately $75,000, will close at the same time.

It is intended that the proceeds of $1,225,372.38 from the Offering will be used for: Operating Expenses, including sales, marketing and business development ($245,074); Engineering and Product Development ($673,954) and Working Capital ($306,343). The Company may reallocate the proceeds from the Offering as may be required depending upon the development of the Company’s business.

In connection with the Offering, the Company paid aggregate cash finders’ fees of $33,182.45 and issued an aggregate of 255,248 finders’ warrants. Each finders’ warrant entitles the holder to acquire one additional Share of the Company at an exercise price of $0.23 for twenty-four (24) months following the closing of the Offering. The securities issued in connection with the first tranche of the Offering are subject to a four-month hold period expiring August 2, 2021. The Offering is subject to final acceptance of the TSX Venture Exchange (“TSXV”).

In connection with the Offering, the Company issued Units to certain insiders of the Company. As a result, the Offering constitutes a related party transaction pursuant to TSXV Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company has determined that exemptions from the requirements of TSXV Policy 5.9 and MI 61-101 are available for the issuance of the Units to related parties. The Company is relying on section 5.5(c) of MI 61-101 for an exemption from the formal valuation requirement on the basis that the transaction is a distribution of securities for cash, and on section 5.7(1)(b) of MI 61-101 for an exemption from the minority shareholder approval requirement, as the fair market value of the transaction, insofar as it involves related parties, will not be more than $2,500,000.

About Edgewater Wireless

We make Wi-Fi. Better.

Edgewater Wireless (www.edgewaterwireless.com) is the industry leader in innovative Spectrum Slicing technology for residential and commercial markets. We develop advanced Wi-Fi silicon solutions, Access Points, and IP licensing designed to meet the high-density and high quality-of-service needs of service providers and their customers. With 24+ patents, Edgewater’s Multi-Channel, Single Radio (MCSR) technology revolutionizes Wi-Fi, delivering next-generation Wi-Fi today.

For more information, visit www.edgewaterwireless.com or www.aera.io.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect," "anticipate," "continue," "estimate," "objective," "ongoing," "may," "will," "project," "should," "believe," "plans," "intends" and similar expressions are intended to identify forward-looking information or statements. Although Edgewater Wireless believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Edgewater Wireless can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause Edgewater Wireless’ actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to access to capital markets, market forces, competition from new and existing companies and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. Edgewater Wireless undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210409005238/en/

FAQ

What is the total amount raised in the first tranche of Edgewater Wireless' private placement?

Edgewater Wireless raised $1,258,555 in the first tranche of its private placement.

What percentage of funds from the offering is allocated to engineering and product development?

Approximately 53.5% (or $673,954) of the funds from the offering are allocated to engineering and product development.

When is the second tranche of the private placement expected to close?

The second tranche of the private placement is expected to close in mid-April 2021.

What is the exercise price of the warrants issued in Edgewater's private placement?

The exercise price of the warrants is $0.23.

What exemptions is Edgewater Wireless relying on for related party transactions?

Edgewater Wireless is relying on exemptions under TSXV Policy 5.9 and MI 61-101.