/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, April 21, 2021 /CNW/ - TeraGo Inc.
("TeraGo" or the "Company") (TSX: TGO)
(www.terago.ca), is pleased to announce that it has closed its
previously announced private placement (the "Private
Placement") with certain institutional investors, including
Cymbria Corporation, acting at the direction of its portfolio
manager, EdgePoint Investment Group
Inc. ("Cymbria"). The Company issued and sold
today an aggregate of 934,100 Series A Units, 934,100 Series B
Units and 934,100 Series C Units of the Company at a subscription
price of $5.25 per Unit, for gross
proceeds of $14,712,075.
Each Unit is comprised of one common share in the capital of the
Company ("Common Share") and one-half (½) of a Series A, B
or C Warrant (each a "Warrant"), each whole Warrant
entitling the holder to purchase one Common Share. In total, the
Company issued 2,802,300 Common Shares, 467,050 Series A Warrants,
467,050 Series B Warrants, and 467,050 Series C
Warrants.
The Company intends to use the net proceeds of the Private
Placement in support of the Company's proposed launch of 5G fixed
wireless services in Canada, to
continue testing and trialling 5G technology, upgrade its core
network, and support its current networking business. In addition,
portions of the net proceeds will be used to repay indebtedness and
for general corporate purposes.
Following today's closing, Cymbria has ownership of, or control or
direction over, (i) 2,418,300 Common Shares, representing
approximately 12.33% of the issued and outstanding Common Shares,
and (ii) Warrants to purchase 1,209,150 Common Shares. If
Cymbria were to exercise all its
Warrants, it would have ownership of, or control or direction over
3,627,450 Common Shares, representing approximately 17.42% of the
issued and outstanding Common Shares.
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 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, statements relating
to proposed upgrades to the Company's core network, the Company's
continued testing and trialing of 5G technology, the Company's
launch of 5G fixed wireless services in Canada, the intended use of proceeds of from
the Private Placement, the future exercise of the Warrants and the
appointment of a designee director to the Board. 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 are subject
to risks, uncertainties and assumptions, including risks relating
to the continued availability of 5G equipment that is suitable and
will allow the Company to complete its technical and customer
trials, the impacts and restrictions caused by the COVID-19
pandemic which may be prolonged and which may further delay
technical and customer trials, the results of the technical and
customer trials not being satisfactory to TeraGo or any of its
technology partners, the economic viability of any potential
services that may result from the technical and customer trials,
industry competitors who may have superior technology or are
quicker to take advantage of 5G technology, the inability of the
Company to launch a 5G fixed wireless business, future regulatory
decisions that would be unfavourable to the Company and the
spectrum licences it currently holds, and those risks set forth in
the "Risk Factors" section in the annual MD&A of the Company
for the year ended December 31, 2020,
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 changes in the Canadian
securities markets and the inability of the Company to launch a
successful 5G fixed wireless business. 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 owns a national spectrum portfolio of exclusive 24 GHz
and 38 GHz wide-area spectrum licences including 2,120 MHz of
spectrum across Canada's 6 largest
cities. 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, Ottawa and Winnipeg.
For more information about TeraGo, please visit
www.terago.ca.
SOURCE TeraGo Inc.