> TeraGo Closes $14.7 Million Private Placement

TeraGo Closes $14.7 Million Private Placement

Each Unit is comprised of one common share in the capital of the Company (“Common Share”) and one-half (½) of a Series A, B or C Warrant (each a “Warrant”), each whole Warrant entitling the holder to purchase one Common Share. In total, the Company issued 2,802,300 Common Shares, 467,050 Series A Warrants, 467,050 Series B Warrants, and 467,050 Series C Warrants.

The Company intends to use the net proceeds of the Private Placement in support of the Company’s proposed launch of 5G fixed wireless services in Canada, to continue testing and trialing 5G technology, upgrade its core network, and support its current networking business. In addition, portions of the net proceeds will be used to repay indebtedness and for general corporate purposes.

Following today’s closing, Cymbria has ownership of, or control or direction over, (i) 2,418,300 Common Shares, representing approximately 12.33% of the issued and outstanding Common Shares, and (ii) Warrants to purchase 1,209,150 Common Shares. If Cymbria were to exercise all its Warrants, it would have ownership of, or control or direction over 3,627,450 Common Shares, representing approximately 17.42% of the issued and outstanding Common Shares.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

This news release includes certain forward-looking statements that are made as of the date hereof. Such forward-looking statements may include, but are not limited to, statements relating to proposed upgrades to the Company’s core network, the Company’s continued testing and trialing of 5G technology, the Company’s launch of 5G fixed wireless services in Canada, the intended use of proceeds of from the Private Placement, the future exercise of the Warrants and the appointment of a designee director to the Board. All such statements constitute “forward-looking information” as defined under applicable Canadian securities laws. Any statements contained herein that are not statements of historical facts constitute forward-looking information. The forward-looking statements reflect the Company’s views with respect to future events and are subject to risks, uncertainties and assumptions, including risks relating to the continued availability of 5G equipment that is suitable and will allow the Company to complete its technical and customer trials, the impacts and restrictions caused by the COVID-19 pandemic which may be prolonged and which may further delay technical and customer trials, the results of the technical and customer trials not being satisfactory to TeraGo or any of its technology partners, the economic viability of any potential services that may result from the technical and customer trials, industry competitors who may have superior technology or are quicker to take advantage of 5G technology, the inability of the Company to launch a 5G fixed wireless business, future regulatory decisions that would be unfavourable to the Company and the spectrum licences it currently holds, and those risks set forth in the “Risk Factors” section in the annual MD&A of the Company for the year ended December 31, 2020, which is available on www.sedar.com under the Company’s corporate profile. Factors that could cause actual results or events to differ materially include changes in the Canadian securities markets and the inability of the Company to launch a successful 5G fixed wireless business. Accordingly, readers should not place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed with the forward-looking statements. Except as may be required by applicable Canadian securities laws, TeraGo does not intend, and disclaims any obligation, to update or revise any forward-looking statements whether in words, oral or written as a result of new information, future events or otherwise.

About TeraGo

TeraGo owns a national spectrum portfolio of exclusive 24 GHz and 38 GHz wide-area spectrum licences including 2,120 MHz of spectrum across Canada’s 6 largest cities. TeraGo provides businesses across Canada with cloud, colocation, and connectivity services. TeraGo manages over 3,000 cloud workloads, operates five data centres in the Greater Toronto Area, the Greater Vancouver Area, and Kelowna, and owns and manages its own IP network. The Company serves business customers in major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver, Ottawa and Winnipeg.


For more information about TeraGo, please visit www.terago.ca.

TeraGo Investor Relations

Matt Glover, Gateway Investor Relations
Telephone: 949-574-3860
Email: TGO@gatewayir.com