WaveRider Raises $10M Private Round

With hopes of gaining a listing on the Nasdaq exchange later this year, WaveRider Communications Inc., a manufacturer of wireless Internet access products, recently raised $10 million through a private placement of common stock.

Toronto-based WaveRider, which is traded domestically on the Over-The-Counter Bulletin Board and various financial exchanges throughout the globe, has raised $20 million in private equity financing since acquiring a publicly traded shell in a reverse merger in 1997.

Chief Executive Bruce Sinclair said the company has applied for a Nasdaq listing and expects to join the exchange once its stock price reaches $4 per share. The stock has fluctuated between $.75 and $3 per share for the past 52 weeks.

Groom Capital.com Inc. of Toronto and Ladenburg Thalmann & Co. of New York participated in the round, which closed last month. The company had previously raised $6 million from a hedge fund operated by Prudential Securities and $4 million from angel investors.

Proceeds from the investment will be used for research and development, which currently consumes up to 70% of the WaveRider’s capital resources, and sales and marketing. The company recently set up a sales office in China to stimulate expansion in the Asia Pacific. Sinclair, who previously served as CEO of Dell Canada and Dell Europe, said WaveRider will soon conduct 75% of its business outside of North America.

WaveRider sells wireless modems, bridges and routers that provide wireless connection between single and multiple computer networks. The company’s current distribution channels include civic organizations such as school districts in need of low-cost Internet access and Internet service providers seeking autonomy from local telecommunications carries.

If WaveRider’s Nasdaq listing is delayed, Sinclair said the company could be receptive to additional private financing. He added that the company is capitalized for the next six months.