TORONTO—Non-line-of-sight fixed wireless equipment provider WaveRider Communications Inc. announced a restructuring plan under which the company arranged for new short-term financing, initiated a shareholders rights offering for longer term financing and implemented immediate staff reductions.
WaveRider said it has commitments for the purchase in excess of $500,000 of promissory notes by certain large shareholders, officers and directors of the company of a planned $1 million total offering. The notes are repayable in one year, bear interest of 8 percent plus a premium of 15 percent upon repayment. Each purchaser also receives one common share purchase warrant per dollar of notes invested.
WaveRider is in the process of filing with the Securities and Exchange Commission relating to the offering of 14 million of its common shares.
To further preserve cash, the company cut approximately 50 percent of its staff in North America and Australia, and the executive staff has agreed to waive all compensation. Other key management personnel have agreed to a 25-percent pay cut until the shareholder rights offering has been completed.
Going forward, WaveRider said it will focus on sustaining its engineering efforts and supporting and growing its current customer base.
