en.Wedoany.com Reported - Edgewater Wireless Systems Inc. (a pioneer in AI-driven Wi-Fi spectrum slicing silicon solutions and IP), based in Ottawa, Canada, and Santa Clara, USA, announced the completion of the first tranche of its non-brokered private placement financing, raising approximately $429,353 through the issuance of 7,155,879 units of the company at $0.06 per unit. The transaction is subject to final approval from the TSX Venture Exchange.
This first tranche saw participation from a strategic investor and investors from the Silicon Catalyst ecosystem, highlighting growing support from Silicon Valley for Edgewater's patented Spectrum Slicing™ technology, PrismIQ™ product roadmap, and strategic execution plan. Each unit consists of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to purchase an additional common share of the company at an exercise price of $0.09 per share for a period of two years from the closing date.
Andrew Skafel, President and CEO of Edgewater Wireless, stated that the completion of the first tranche represents a significant execution milestone for the company. Securing support from strategic investors in the global semiconductor industry, along with additional backing from the Silicon Catalyst ecosystem, further reinforces industry interest in Spectrum Slicing and the company's high-reliability, low-latency wireless connectivity roadmap. Skafel believes this support reflects both validation of the company's technology and confidence in its ability to advance the next phase of its strategic plan.
Management participated in this offering, demonstrating continued alignment with shareholders and confidence in the company's strategic direction. Insiders collectively subscribed for 1,000,000 units, raising a total of $60,000. Pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, this transaction constitutes a "related party transaction." The company relies on applicable exemptions from formal valuation and minority shareholder approval requirements under MI 61-101, as the fair market value of insider participation is not expected to exceed 25% of the company's market capitalization.
The company plans to use the net proceeds from the offering for semiconductor design, engineering, and product development related to its Spectrum Slicing™ prototype, as well as general working capital. The company may complete one or more additional tranches of the offering subject to market conditions and applicable regulatory approvals.
In connection with this offering, the company paid a cash commission of $2,478 to an independent finder, representing 7.0% of the gross proceeds from subscribers introduced by the finder. The company also issued 41,300 finder warrants to the finder, representing 7.0% of the number of units purchased by subscribers introduced by the finder. Each finder warrant entitles the holder to purchase one common share of the company at an exercise price of $0.09 per share for a period of 24 months from the closing date of the offering.
