|By Business Wire||
|May 7, 2014 04:27 PM EDT||
Wi2Wi Corporation ("Wi2Wi" or the "Company")(TSX-V: YTY) is pleased to
announce its audited consolidated financial results for the year ending
December 31, 2013
December 31, 2013
December 31, 2012
|(in thousands of US dollars)|
|Statement of results|
|Research and Development||1,000||1,166|
|Selling, general and administrative||4,762||3,897|
|Share Listing expenses and interest paid||3,099||152|
|Net Loss and Total Comprehensive Loss||$(7,391)||$(4,106)|
|Net loss per share, basic and diluted||$(0.09)||$(0.01)|
Wi2Wi designs, manufactures and markets miniaturized embedded wireless connectivity solutions (incorporating both hardware and software) for premium industrial/medical, smart-home/smart building and government markets worldwide. These products and value added services provide highly integrated, multifunctional wireless sub systems for mobile applications of all forms for mobile devices.
Revenues for the quarter ended December 31, 2013 and December 31, 2012 were $310 and $665, respectively. Revenues decreased by 46% for the quarter ended December 31, 2013, compared to the same period in 2012.
The Company is experiencing strong demand for its products across multiple business segments and as of the date of this release has record backlogs.
Gross profits for the quarter ended December 31, 2013 and December 31, 2012 were $109 and $246, respectively. Gross profits decreased by 44% for the quarter ended December 31, 2013, compared to the same period in 2012. Gross margins for the quarter ended December 31, 2013 and December 31, 2012 were 35% and 37%, respectively. This is slightly lower than the results in previous quarters in 2013, due to some inventory write downs and the impact that a large customer with lower margins had on the total gross margins in the current quarter.
On November 4, 2013, the Company entered into an agreement with Paradigm Capital Inc. to act as lead agent and sole book-runner on behalf of a syndicate, to complete a brokered private placement of units (“Units”) for up to CDN$4,000,000 (the “Offering”). The Offering will be made on a best efforts fully marketed private placement basis. Each Unit shall be comprised of one common share priced in the context of the market and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each whole Warrant shall entitle the holder thereof to acquire one common share of the Company at a price to be determined in the context of the market for a period of 24 months following the closing of the Offering. The agreement was mutually terminated on January xx, 2014. On November 18, 2013 the pricing of the Private Placement was approved by the Board at $0.20 per common share plus one half warrant per common share. The exercise price of a full warrant is set at $0.25 and a term of two years from the date of issuance.
The Company announced on February 27, 2014 closing of its first tranche of its non brokered private placement Offering, issuing 2,175,000 Units at a price of CDN$0.20 per Unit. On April 30, 2014 the Company received acceptance for filing documents; the final number of shares issued amounted to 2,961,452 along with 1, 480,726 warrants attached to those shares, for gross proceeds of CDN$592.
The Company wishes to announce that Mr. James Wyant and Mr. John Lokker have stepped down from the Wi2Wi Board of Directors, and Mr. Lokker has resigned as the Company’s interim Chief Financial Officer.
“Mr. Wyant and Mr. Lokker have held pivotal roles in Wi2Wi, Mr Wyant as Chair of the Audit Committee, and Mr. Lokker who stepped in as the Company’s interim CFO. We greatly appreciate the unique perspectives and undeterred dedication both committed during their time,” said Chairman Hans P. Black. “We would like to thank both Mr. Wyant and Mr. Lokker for their invaluable contributions to the Wi2Wi Board and wish them continued success in their future endeavours.”
For further information, please contact:
Interim Chief Executive Officer
(408) - 416-4221
Forward-Looking Statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
This news release contains “forward-looking statements” within the meaning of applicable securities laws relating to, among other things, the Proposed Transaction. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. Completion of the Proposed Transaction described herein is dependent on a number of factors and is subject to a number of risks and uncertainties, and it is not certain that the Proposed Transaction will be completed. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Com0pany`s or Wi2Wi’s business, general business, economic and competitive uncertainties and delay or failure to receive board, shareholder or regulatory approvals.
Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.