DragonWave, Inc.(USA) (NASDAQ:DRWI)
DragonWave, Inc.(USA) (NASDAQ:DRWI) shares are down almost 70%, on massive volumes, and have hit new 52-week lows after the company received notification from creditors of their intent to place the company in receivership. DRWI shares closed at $0.89 on Friday after the Toronto Stock Exchange suspended trading in the shares based on the afore-mentioned news. However, DRWI shares appear to be trading on the Nasdaq Exchange as of this morning.
Comerica Bank and Export Development Canada, secured lenders to DragonWave, have filed an application with the Ontario Superior Court of Justice to appoint KSV Kofman Inc. as receiver over the business and assets of DragonWave, Inc.(USA) (NASDAQ:DRWI). The Application is scheduled to be heard today at 9:30 a.m. The lenders stated that they will pursue a short, court-supervised sale process conducted by KSV Kofman Inc. to maximize value for the lenders and other stakeholders.
DragonWave, Inc.(USA) (NASDAQ:DRWI) received notice from the Toronto Stock Exchange (TSX) that the exchange is reviewing the listing eligibility for DRWI shares pursuant to Part VII of the TSX Company Manual – specifically the terms outlined in section 708 (Insolvency) and sections 709 and 710(a)(i) (Financial Condition and/or Operating Results) of the Company Manual are applicable to the Company. DragonWave, Inc.(USA) (NASDAQ:DRWI) is being reviewed under the Expedited Review Process of the TSX. As a result, the Company’s shares have been suspended from trading until further notice. A meeting of the Continued Listing Committee of the TSX is scheduled to be held on July 31, to consider whether or not to delist DRWI shares. If Dragonwave’s securities are delisted from the TSX, the company may consider an alternative listing on the TSX Venture Exchange or NEX.
Lastly, the Nasdaq Exchange has informed DragonWave, Inc.(USA) (NASDAQ:DRWI) that they will receive a notice of delisting on Monday, July 31, 2017, with delisting to occur on Wednesday, August 2, 2017.
Information on this company is fluid and sometimes contradictory – even from established news sources. If you plan to enter or exit a position we strongly encourage you to personally consult with a reputable broker who has access to primary sources of information.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.