QUEBEC, QC / March 18, 2022 / NuRAN Wireless Inc. (“NuRAN” or the “Company”) (CSE:NUR)(OTC PINK:NRRWF)(FSE:1RNA), a leading rural telecommunications company, is pleased to provide a corporate update on certain significant milestones for the Company and announces the closing of the first tranche of its previously announced bridge financing.
The Company has completed the final step in unwinding the bankruptcy of its wholly owned subsidiary, Nutaq Innovation Inc. NuRAN’s proposal to creditors was accepted by the bankruptcy court on March 17, 2022 and a final payment of settlement made. The unwinding allows the Company to recover certain research and development tax credits totaling CAD$182,000 and past tax losses estimated to be over CAD$30 Million that will be of significant value for NuRAN moving forward.
The Company is also pleased to announce that it has signed the final agreement with Afriland First Bank in Cameroon (“Afriland“) for the CAD$2.87 Million loan facility announced previously on November 29, 2021 with proceeds to be used for infrastructure investment in Cameroon. Once Afriland funds the facility, the Company will be able to retrieve over CAD$1 Million to support continued investment elsewhere. The loan is for a five (5) year term with an initial six (6) month capital grace period and an annual interest rate of 9%. NuRAN is guaranteeing the loan in the amount of $1.6M CAD by way of a letter of guarantee with the CIBC. Afriland also operates in many countries being targeted for future NAAS projects such as Ivory Coast, Liberia and South Sudan.
The Company closed the first tranche of the previously announced secured convertible debenture financing (each, a “Debenture“) in the principal amount of approximately $2,000,000 (subject to an original issuance discount of 10%). Each Debenture issued will be convertible into common shares of the Company (each, a “Share“) at a price of $1.35 per Share. The Debentures will mature on March 17, 2024. The Debentures are secured by way of general security agreement and an agency and interlender agreement made in favour of a collateral agent acting as agent for all of the holders of the Debentures. The Company also issued to the purchasers of the Debentures, 0.9 of one Share purchase warrant (each, a “Warrant“) for each Share underlying Debentures purchased. Each Warrant is exercisable until March 17, 2024 (the “Expiry Date“) into Shares at an exercise price of $2.00 per Share. The Debentures may be prepaid by the Company at any time prior to the Expiry Date, upon ten business days’ notice to the holder of the Debenture, subject to the Company paying a price equal to 103% of the principal amount of the Debentures then outstanding plus accrued and unpaid interest thereon. There were no broker warrants issued or commission paid in connection with the closing. The Company intends to use the net proceeds for working capital purposes and fund expenditures linked to previously announced deployments.
NuRAN also wishes to clarify that the warrants to be issued on the closing of the previously announced second tranche convertible debenture facility will have an exercise price that is equal to a 50% premium to the tranche closing share price. The closing share price will be equal to the 5 day volume weighted average closing price of the Company’s common shares prior to the tranche drawdown date.
NuRAN is also pleased to announce that there are currenty 73 sites live with 45 in Cameroon and 28 in the Democratic Republic of the Congo (DRC). NuRAN remains commited to having over 500 sites live by the end of fiscal 2022. NuRAN will continue to provide an update as more sites get rolled out in the coming weeks and months.
About NuRAN Wireless:
NuRAN Wireless 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 Wireless 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.”