TeraGo sells shares to fund 5G trials

Thursday 13 June 2019 | 12:10 CET | News

Canadian operator TeraGo has agreed to sell shares worth CAD 7.7 million in a bought deal with a syndicate of underwriters led by TD Securities. The 700,000 shares were offered at a small discount of CAD 11 per share. The proceeds will be used for 5G trials.

TeraGo has granted the underwriters an overallotment option, exercisable at the offering price for a period of 30 days, to purchase up to an additional 15 percent of the total number of shares sold. This would take the gross proceeds to CAD 8.9 million. 

The company said it intends to use the net proceeds of the offering to fund technical and customer trials related to 5G technology in support of launching 5G fixed wireless services in Canada.

Licence extension

TeraGo also announced that it should be able to renew its licences for the 38 GHz band, according to the latest government decision on mmWave frequencies. Upon expiry in 2025, all of its 38 GHz fixed wireless spectrum licences in compliance with current licence conditions will be eligible for renewal under the new flexible use licence model, the company said. This provides continuity for its business and underlines the value of the holdings. 

TeraGo is currently the largest holder of licensed 38 GHz spectrum in Canada with 25 of 27 issued licences covering 1.7 billion MHz/Pops in 10 markets .TeraGo also holds licences in the 24 GHz band across eight major markets including Canada’s six largest cities covering 6.9 billion MHz/Pops. The 24 GHz band was not included in the government's 5G spectrum consultation and decision, but TeraGo noted that this band has been targeted for 5G in the US, Europe and China. 

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Categories: Mobile & Wireless
Companies: TeraGo
Countries: Canada
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