TORONTO, July 31, 2017 /CNW/ - DragonWave Inc.
(TSX: DRWI) (NASDAQ: DRWI) (the "Company" or
"DragonWave") reports that, on the application of Comerica
Bank as Agent for DragonWave's senior lenders, the Ontario Superior
Court of Justice (Commercial List) (the "Court") has
appointed KSV Kofman Inc. as receiver and receiver and manager
("Receiver") over all of the property, assets and
undertakings of DragonWave pursuant to section 243(1) of the
Bankruptcy and Insolvency Act and section 101(1) of the
Courts of Justice Act.
The Receiver expects to return to Court shortly to seek approval
of a sale process for DragonWave's business and assets in order to
provide an opportunity for interested purchasers or investors to
submit going concern bids in an effort to preserve the Company's
business and maximize value for all stakeholders. It is
currently anticipated that the Company will continue to operate in
the normal course during the sale process.
All Court materials filed in the Company's receivership
proceedings are available on the Receiver's website at:
http://ksvadvisory.com/dragonwave-inc.
New contact information
All future enquiries about the Company and its activities should be
directed to the Receiver. Contact details are provided
below.
Effective July 20, 2017,
DragonWave's common shares have been suspended from trading on the
Toronto Stock Exchange by the Investment Industry Regulatory
Organization of Canada.
Forward Looking Statements
This news release contains certain statements that constitute
forward looking statements under applicable securities
legislation. All statements other than statements of
historical fact are forward looking statements. In some
cases, forward looking statements can be identified by terminology
such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "predict", "potential", "continue", or the
negative of these terms or other comparable terminology.
These statements are only as of the date of this document and the
Company does not undertake to publicly update these forward looking
statements except in accordance with applicable securities laws.
Forward looking statements, including without limitation,
statements concerning the implementation of the receivership
process and the ongoing operations of the Company are based on
current expectations, estimates, projections and assumptions, which
the Company believes are reasonable but which may prove to be
incorrect and therefore such forward looking statements should not
be unduly relied upon. These forward looking statements
involve known and unknown risks, uncertainties which may cause
actual results or performance to be materially different from any
future results or performance expressed or implied herein. These
risks, uncertainties and other factors relating to the Company
include, but are not limited to, the level of indebtedness of the
Company, the implementation and impact of obtaining any
reorganization or restructuring of the assets, business and
financial affairs of the Company, future cooperation of the
creditors of the Company, the Company's ability to generate
sufficient cash flow from operations or to obtain adequate
financing to fund capital expenditures and working capital needs
and to meet the Company's ongoing obligations during the
receivership process and thereafter, the ability to maintain
relationships with suppliers, customers, employees, shareholders
and other third parties in light of the Company's current liquidity
situation and the receivership proceedings, as well as other
general assumptions regarding, among other things: industry
activity; the general stability of the economic and political
environment; effect of market conditions on demand for the
Company's products; the ability to obtain qualified staff,
equipment and services in a timely and cost efficient manner; the
ability to operate its business in a safe, efficient and effective
manner; the effect of current plans; the timing and costs of
capital expenditures; future commodity prices; currency, exchange
and interest rates; the regulatory framework regarding
environmental matters in the jurisdictions in which the Company
operates; and the ability of the Company to successfully market its
products. Additional risks and uncertainties affecting the Company
and its business and affairs are described in further detail under
the heading "Risks and Uncertainties" in the Company's Management's
Discussion & Analysis dated July 12,
2017 and in the Company's Annual Information Form and other
public documents filed by DragonWave with Canadian and United States securities regulatory
authorities, which are available at www.sedar.com and www.sec.gov
respectively. Although the Company believes that the expectations
in such forward looking information are reasonable, there can be no
assurance that such expectations shall prove to be correct. Any
forward looking information included in this press release is
expressly qualified in its entirety by this cautionary statement.
Any forward looking information included herein is made as of the
date of this news release and the Company assumes no obligation to
update or revise any forward looking information to reflect new
events or circumstances, except as required by law.
On behalf of DragonWave Inc. by KSV Kofman Inc.
as receiver and receiver and manager of DragonWave Inc.
SOURCE DragonWave Inc.