/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
THORNHILL, ON, June 26 /CNW/ - TeraGo Inc. (TeraGo) announced today it
has successfully completed its initial public offering of 4.3 million common
shares at $11.75 per share for total gross proceeds of $50.0 million and will
begin trading on the Toronto Stock Exchange today under the symbol TGO.
"This offering is an important step in the growth of our business," said
Bryan Boyd, Chief Executive Officer. "We plan to aggressively grow our
customer concentration in existing markets and expand our wireless broadband
network into new geographic markets in Canada. Our plans also include
leveraging our customer base and network to deploy additional value-added IP
services to complement our current broadband Internet access and data
connectivity services," he added.
The offering was sold through an underwriting syndicate co-led by CIBC
World Markets Inc. and Genuity Capital Markets G.P. The syndicate also
comprised Canaccord Capital Corporation, Wellington West Capital Markets Inc.
and Orion Securities Inc. TeraGo has granted the underwriters an
over-allotment option to purchase 638,400 common shares for a period of 30
days following the closing of the offering.
TeraGo also announced it has named Grant Ballantyne to its Board of
Directors in place of Ray Benzinger, who resigned from the Board.
Mr. Ballantyne is President and Chief Executive Officer and a Director of
Canlan Ice Sports Corp. Mr. Ballantyne will also chair the Audit Committee.
TeraGo would like to extend its sincere thanks to Ray for his service.
About TeraGo Inc. and TeraGo Networks
TeraGo Networks (www.TeraGo.ca), a wholly owned subsidiary of TeraGo Inc,
is a leading wireless broadband communications service provider to Canadian
businesses. The Company owns and operates a carrier-grade, fixed wireless, IP
communications network in Canada targeting medium-sized businesses that
require broadband Internet access and data connectivity services. The Company
is well positioned to address the important and growing demand among
enterprise businesses in Canada for network access diversity by offering
wireless services that are truly redundant to their existing wireline
Certain statements in this press release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or achievements, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. When used in this press release, such statements use such words as
"may", "will", "believe", "plan" and other similar terminology. These
statements reflect current assumptions and expectations regarding future
events and operating performance and speak only as of the date of this press
release. Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future performance or
results, and will not necessarily be accurate indications of whether or not
such results will be achieved. A number of factors could cause actual results
to vary significantly from the results discussed in the forward-looking
statements, including, but not limited to, the factors discussed under "Risk
Factors" in TeraGo's prospectus filed with the Canadian securities regulatory
authorities. Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable assumptions,
TeraGo cannot assure investors its actual results will be consistent with
these forward-looking statements. We assume no obligation to update or revise
these forward-looking statements to reflect new events or circumstances.
For further information:
For further information: Bryan Boyd, Chief Executive Officer, TeraGo
Inc., (905) 707-1103