Thursday, September 24, 2009

DragonWave Files for U.S. IPO and NASDAQ Listing

DragonWave has filed for an initial public offering of common shares in the United States (the "U.S. IPO"), proposing to ffer 7,454,050 common shares while certain selling shareholders propose to offer 5,518,250 common shares (the "Offering"). In connection with its U.S. IPO, DragonWave has received conditional approval to list its common shares on the NASDAQ Global Market.

DragonWave expects to use the net proceeds from the Offering (excluding any net proceeds to the selling shareholders) primarily:

  • to strengthen the company's balance sheet in preparation for new mobile broadband network deployments and to better position DragonWave to be selected as an equipment vendor for large network service providers;

  • to fund working capital requirements associated with accelerating sales and production of DragonWave's products, and

  • to continue to fund efforts to increase sales penetration in regions outside North America.