TeraGo Networks Inc.

TeraGo Networks Inc.

June 26, 2007 09:49 ET

TeraGo Inc. Completes $50.0 Million Initial Public Offering

THORNHILL, ONTARIO--(Marketwire - June 26, 2007) -

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Attention Finance/Business/Technology and Telecommunications Editors/Reporters:

TeraGo Inc. (TeraGo) (TSX:TGO) announced today it has successfully completed its initial public offering of 4.3 million common shares at $11.75 per share for total gross proceeds of $50.0 million and will begin trading on the Toronto Stock Exchange today under the symbol TGO.

"This offering is an important step in the growth of our business," said Bryan Boyd, Chief Executive Officer. "We plan to aggressively grow our customer concentration in existing markets and expand our wireless broadband network into new geographic markets in Canada. Our plans also include leveraging our customer base and network to deploy additional value-added IP services to complement our current broadband Internet access and data connectivity services," he added.

The offering was sold through an underwriting syndicate co-led by CIBC World Markets Inc. and Genuity Capital Markets G.P. The syndicate also comprised Canaccord Capital Corporation, Wellington West Capital Markets Inc. and Orion Securities Inc. TeraGo has granted the underwriters an over-allotment option to purchase 638,400 common shares for a period of 30 days following the closing of the offering.

TeraGo also announced it has named Grant Ballantyne to its Board of Directors in place of Ray Benzinger, who resigned from the Board. Mr. Ballantyne is President and Chief Executive Officer and a Director of Canlan Ice Sports Corp. Mr. Ballantyne will also chair the Audit Committee. TeraGo would like to extend its sincere thanks to Ray for his service.

About TeraGo Inc. and TeraGo Networks

TeraGo Networks (www.TeraGo.ca), a wholly owned subsidiary of TeraGo Inc, is a leading wireless broadband communications service provider to Canadian businesses. The Company owns and operates a carrier-grade, fixed wireless, IP communications network in Canada targeting medium-sized businesses that require broadband Internet access and data connectivity services. The Company is well positioned to address the important and growing demand among enterprise businesses in Canada for network access diversity by offering wireless services that are truly redundant to their existing wireline broadband connections.

Forward-looking Statements

Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "believe", "plan" and other similar terminology. These statements reflect current assumptions and expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in TeraGo's prospectus filed with the Canadian securities regulatory authorities. Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, TeraGo cannot assure investors its actual results will be consistent with these forward-looking statements. We assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.

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Contact Information

  • TeraGo Inc.
    Bryan Boyd
    Chief Executive Officer
    (905) 707-1103