Edgewater Wireless Systems Inc. (TSXV: YFI) (OTC: KPIFF), an industry pioneer in AI-powered Wi-Fi Spectrum Slicing silicon solutions, has completed the first closing of its previously announced non-brokered private placement financing. The company issued 7,155,879 units at $0.06 per unit, raising gross proceeds of approximately $429,353, subject to final acceptance by the TSX Venture Exchange.
The first close includes participation from a strategic investor in the global semiconductor industry, alongside additional investors from the Silicon Catalyst ecosystem. This underscores growing support from Silicon Valley for Edgewater's patented Spectrum Slicing technology, its PrismIQ product roadmap, and strategic execution plan. Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable at $0.09 per share for two years.
Andrew Skafel, President and CEO of Edgewater Wireless, stated, 'This first close is an important execution milestone for Edgewater. Securing a strategic investor from the global semiconductor industry, alongside additional support from the Silicon Catalyst ecosystem, reinforces the growing industry interest in Spectrum Slicing and our roadmap for high-reliability, low-latency wireless connectivity. We believe this support reflects both validation of our technology and confidence in our ability to advance the next stage of our strategic plan.'
Management participation in the offering demonstrates continued alignment with shareholders and confidence in the company's strategic direction. Insiders purchased an aggregate of 1,000,000 units for gross proceeds of $60,000, constituting a 'related party transaction' under Multilateral Instrument 61-101. The company is relying on applicable exemptions from formal valuation and minority shareholder approval requirements, as the fair market value of insider participation is not expected to exceed 25% of the company's market capitalization.
Net proceeds from the offering will be used for semiconductor design, engineering, and product development related to its Spectrum Slicing prototype, as well as for general working capital. The company may complete additional tranches subject to market conditions and regulatory approvals.
Edgewater paid a cash commission of $2,478 to an arm's length finder and issued 41,300 finder's warrants exercisable at $0.09 per share for 24 months. All securities issued in the first tranche are subject to a four-month statutory hold period.
Edgewater Wireless, a Silicon Catalyst portfolio company, delivers AI-powered Wi-Fi Spectrum Slicing technology through its PrismIQ product family, enabling multiple concurrent channels within a single band for improved capacity, lower latency, and deterministic performance. The company's solutions target service provider networks, autonomous systems, critical communications infrastructure, and other high-reliability wireless applications.
