Mr. Ted Clark reports
WI2WI CORPORATION ANNOUNCES PRIVATE PLACEMENT AND EXPANDED ORDER FROM KEY CUSTOMER
Wi2Wi Corp. has arranged a best efforts non-brokered private placement for the issuance of up to 15 million units of the company at a price of five cents per unit, to raise aggregate gross proceeds of up to $750,000. Each unit will comprise one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one share at an exercise price of 10 cents per share for a period of two years from the closing date of the offering, subject to an acceleration clause (details described below).
Use of proceeds
The company intends to use the proceeds from the offering, for working capital purposes, including to satisfy increased demand from a long-standing client. In response to a recent shipment that did not meet Wi2Wi's quality standards, the company was able to immediately determine the root cause (which was isolated to a single major account customer) and that resulted in a follow-on order of approximately $500,000 (U.S.) for the same component. Such order reinforces the company's relationships with its customers, as well as Wi2Wi's commitment to quality and customer satisfaction. Fulfilling this order will require additional working capital as the company ramps up its production.
"Our top priority is delivering high-quality products and maintaining strong customer relationships," said Ted Clark, chief executive officer of Wi2Wi. "We acted quickly to resolve this matter, demonstrating our commitment to excellence. The customer's continued trust and significant follow-on order reflect the value they place in Wi2Wi's solutions and service."
Acceleration terms of the warrants
If, at any time prior to the expiry date of the warrants, the closing price of the shares on the TSX Venture Exchange is equal to or greater than 10 cents for any 10 consecutive trading days, then the company may, at its option, accelerate the expiry date of the warrants by issuing a press release announcing that the expiry date of the warrants shall be deemed to be on the 30th day following the issuance of the warrant acceleration press release. All warrants that remain unexercised following the accelerated expiry date shall immediately expire and all rights of holders of such warrants shall be terminated without any compensation to such holder.
The units will be offered by way of a private placement pursuant to exemptions from prospectus requirements under applicable Canadian securities laws. Closing of the offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the exchange. All securities issued in connection with the offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with the policies of exchange and applicable securities legislation.
About Wi2Wi Corp.
Wi2Wi is a specialized electronic component supplier with expertise in frequency control devices as well as in wireless technologies. Founded in 2005, Wi2Wi's headquarters, design centre and manufacturing facility are located in Middleton, Wis. Wi2Wi aims to deliver specific solutions using its in-house design and manufacturing expertise, as well as leveraging global partnerships with silicon and wireless technology suppliers.
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