DragonWave Inc.

DragonWave Inc.

September 07, 2007 10:00 ET

DragonWave Inc. Announces Pricing of Common Share Offering


DragonWave Inc. ("DragonWave" or the "Company") (TSX:DWI)(AIM:DWI) is pleased to announce that in connection with the proposed public offering of common shares previously announced on September 6, 2007, it has entered into an underwriting agreement with a syndicate of underwriters led by Canaccord Capital Corporation and including CIBC World Markets Inc., Genuity Capital Markets G.P., Orion Securities Inc. and Raymond James Ltd. (collectively, the "Underwriters") for the purchase by the Underwriters of 3,800,000 common shares issued from treasury and 3,200,000 common shares to be sold by certain selling shareholders, at a price of C $6.25 ((pnds stlg)2.94) per common share, for aggregate gross proceeds of C $43,750,000 ((pnds stlg)14,880,952) (the "Offering").

The Company has granted the Underwriters an over-allotment option (the "Over-Allotment Option"), exercisable for a period of 30 days following the closing of the Offering, to purchase up to that number of common shares equal to 15 percent of the number of common shares sold pursuant to the Offering. If the Over-Allotment Option is exercised in full, the gross proceeds of the Offering will increase to C$50,312,500 ((pnds stlg)17,113,095).

As previously announced, the net proceeds from the proposed treasury offering will be used by the Company primarily to continue to fund its efforts to increase sales penetration in regions outside North America, to fund development of the Company's next generation of wireless Ethernet products and related improvements to existing products, to engage in marketing efforts to further raise the Company's profile, to strengthen the Company's balance sheet, to provide an available source of funding for potential future acquisition opportunities and for general corporate purposes.

A preliminary short-form prospectus for the Offering was filed with the securities commissions in each of the provinces of Canada (except Quebec) on September 6, 2007. An amended preliminary prospectus for the Offering will be filed today in each of the provinces of Canada (except Quebec) to include pricing and other terms of the Offering. A (final) short-form prospectus is expected to be filed with each of the Canadian securities commissions (except Quebec) as soon as possible after regulatory approval.

The Offering is expected to close on or about September 20, 2007.

This press release is not an offering of securities for sale in the United States. The common shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.


DragonWave™ is a leading provider of high-capacity wireless Ethernet equipment used in emerging IP networks. DragonWave designs, develops, markets and sells proprietary, carrier-grade microwave radio frequency networking equipment, or links that wirelessly transmit broadband voice, video and other data. DragonWave's wireless Ethernet products, which are based on a native Ethernet platform, function as a wireless extension to an existing fibre-optic core telecommunications network. The principal application for DragonWave's products is to perform the backhaul function in a wireless communications network. Additional applications for DragonWave's products include point-to-point transport in private networks, including municipal and enterprise networks. DragonWave's corporate headquarters are located in Ottawa, Ontario, and have sales locations in Europe and North America.

Investors and security holders may obtain the preliminary prospectus free of charge on SEDAR website maintained by the Canadian Securities Administrators at http://www.sedar.com, a link to the same is also available on the Company's website www.dragonwaveinc.com.


Certain statements included in this news release constitute "forward looking" statements within the meaning of securities laws.

Forward-looking information may relate to our future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", or other similar expressions concerning matters that are not historical facts.

These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

Forward looking-information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include changes in market and competition, governmental or regulatory developments and general economic conditions.

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