DragonWave Inc.
TSX : DWI
AIM : DWI

DragonWave Inc.

September 06, 2007 16:14 ET

DragonWave Inc. Announces Proposed Common Share Offering

OTTAWA, ONTARIO--(Marketwire - Sept. 6, 2007) - THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

DragonWave Inc. (TSX:DWI)(AIM:DWI) (the "Company") announced today that it has filed a preliminary short form prospectus in each of the provinces of Canada, other than Québec, in connection with an overnight-marketed public offering (the "Offering") of common shares. The Offering will include both a treasury offering by the Company and a secondary offering by certain selling shareholders. The Offering will be led by Canaccord Capital Corporation. The Company has granted the underwriters an over-allotment option to purchase that number of additional common shares equal to up to 15% of the common shares sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering. The Offering is subject to certain conditions, including regulatory
approval.

The Offering will be priced in the context of the market with final terms of the Offering to be determined at the time of pricing. 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.

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.

ABOUT DRAGONWAVE

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

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.

Contact Information

  • INVESTOR RELATIONS CONTACT:
    DragonWave Inc.
    Russell Frederick, CFO
    613-599-9991 ext: 2253
    Fax: 613-599-4225
    investor@dragonwaveinc.com
    or
    DragonWave Inc.
    Nadine Kittle
    Media Relations
    613-599-9991 ext. 2262
    nkittle@dragonwaveinc.com
    or
    Weber Shandwick Financial (for DragonWave)
    John Moriarty
    020 7067 0736
    Mob: 07971 402224
    jmoriarty@webershandwick.com
    or
    AIM NOMAD
    Chris Bowman or Andrew Chubb
    Canaccord Adams Limited
    +44 20 7050 6500