NuRAN Wireless Secures $5M Loan to Expand Rural Connectivity in Africa
NuRAN Wireless Inc., a leading supplier of mobile and broadband wireless infrastructure solutions, has announced the financial close of the US $5M Loan Facility with the Facility for Energy Inclusion (“FEI”), a fund managed by Cygnum Capital (the “Facility”) previously announced on April 26th, 2024. The initial drawdown of US$2.5M under the Facility is underway and the funds will be disbursed within 5 to10 business days.
We are pleased to have successfully completed this important financing allowing the Company to focus on building more sites in Africa with the aim of demonstrating the effectiveness and profitability of these rural and remote sites. As we continue to add live sites to our inventory, we believe that our business model will not only prove to be successful but will demonstrate the value of the more than 5,000 sites that we already have under contract.
Francis Letourneau, President and CEO, NuRAN Wireless Inc.
The initial draw down under the Facility consists of the principal amount of US$2.5M which amount includes a US$1.07M refinancing of renewable energy assets already previously shipped and installed by NuRAN in Cameroon. Combined with the operating cash generated by operations, this is expected to allow the company to complete the 122 sites from the initial contract and to build up to an additional 120 new sites.Based on the recent performance of its sites in Cameroon the new site build represents an important milestone in expanding connectivity in underserved regions across the country. A drawdown under the Facility for the Democratic Republic of the Congo (DRC) is expected to follow subject to compliance with all drawdown conditions and upon closing is expected to fund the completion of over 100 sites in DRC. Management also intends to kickoff operations in Ivory Coast and to build sites from inventory in South Sudan before the end of 2024 subject to further financing.
NuRAN also announced that, in connection with the closing of the Facility, it has reached agreement with Advance Factoring Inc., the holder of debt under the Factoring Agreement dated as of August 28, 2023 (the “Factor) and certain existing holders of convertible debentures (the “Debentureholders”) pursuant to which the Factor and Debentureholders agreed to subordinate their outstanding security to the Facility with respect to all Africa assets and to waive any current events of default. The Company has also extended the maturity date of the Convertible Debentures entered into in July 2022 to December 31, 2025 in return for an increase in the principal amount to US$2.53M plus an agreed cash repayment plan and increased interest charges of 24% equal to the default rate. NuRAN also increased the amounts available for factoring under the Factoring Agreement entered into in August 2023 allowing the Company to draw additional amounts at its discretion. No changes were made to the conversion price of outstanding convertible debentures and the conversion price in the factoring agreement.
