/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA ONLY AND IS NOT AUTHORIZED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 18, 2018 /CNW/ - TeraGo Inc.
("TeraGo" or the "Company") (TSX: TGO,
www.terago.ca), is pleased to announce that it has closed its
previously announced bought deal offering (the "Offering"),
including the exercise in full of the underwriters' over-allotment
option. The Company issued and sold today an aggregate of 1,302,950
Common Shares at a price of $5.30 per
Common Share for gross proceeds of $6,905,635.
The Offering was carried out pursuant to an underwriting
agreement dated June 4, 2018 with a
syndicate of underwriters led by TD Securities Inc., and included
Cormark Securities Inc. and Desjardins Securities Inc.
(collectively, the "Underwriters").
The Company intends to use the net proceeds of the Offering to
fund its acquisition of six 24 GHz spectrum licences for which it
is currently leasing and any associated costs of such acquisition,
as further disclosed in the final short form prospectus dated
June 11, 2018 (the "Final
Prospectus").
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
Forward-Looking Statements
This news release includes certain forward-looking statements
that are made as of the date hereof. Such forward-looking
statements may include, but are not limited to the intended use of
proceeds of the Offering and the proposed acquisition by the
Company of additional spectrum. All such statements constitute
"forward-looking information" as defined under, applicable Canadian
securities laws. Any statements contained herein that are not
statements of historical facts constitute forward-looking
information. The forward-looking statements reflect the Company's
views with respect to future events and is subject to risks,
uncertainties and assumptions, including risks relating to the
proposed acquisition of additional spectrum and those risks set
forth in the "Risk Factors" sections in each of the Final
Prospectus and the annual MD&A of the Company for the year
ended December 31, 2017, which is
available on www.sedar.com under the Company's corporate profile.
Factors that could cause actual results or events to differ
materially include the inability to satisfy conditions of the
proposed acquisition of additional spectrum, the failure to receive
ISED approval with respect to the proposed acquisition of
additional spectrum, and certain counterparty risks in dealing with
the current holder of the 24 GHz spectrum licences from whom the
Company will be acquiring the licences from. Accordingly, readers
should not place undue reliance on forward-looking statements as a
number of factors could cause actual future results, conditions,
actions or events to differ materially from the targets,
expectations, estimates or intentions expressed with the
forward-looking statements. Except as may be required by applicable
Canadian securities laws, TeraGo does not intend, and disclaims any
obligation, to update or revise any forward-looking statements
whether in words, oral or written as a result of new information,
future events or otherwise.
About TeraGo
TeraGo provides businesses across Canada with cloud, colocation and connectivity
services. TeraGo manages over 3,000 cloud workloads, operates five
data centres in the Greater Toronto
Area, the Greater Vancouver
Area, and Kelowna, and owns
and manages its own IP network. The Company serves business
customers in major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg. TeraGo Networks is a Competitive
Local Exchange Carrier (CLEC) and was recognized by IDC as a
Major Player in MarketScape Cloud
Vendor Assessment. TeraGo Networks was also selected as one of
Canada's Top Small and Medium
Employers for 2017.
For more information about TeraGo, please visit
www.terago.ca.
SOURCE TeraGo Inc.