NuRAN Wireless Inc., a leading supplier of mobile and broadband wireless infrastructure solutions, has provided the following corporate update on business:
The Company has announced that its wholly owned subsidiary, NuRAN Wireless DRC SARLU, has completed its application for a network infrastructure license in the Democratic Republic of the Congo,. The license is similar to the Category 1 License announced on October 17, 2023 in Cameroon in that it allows for expansion of the business model beyond Network as a Service allowing services to multiple mobile network operators on individual sites as well as the addition of VSAT services. The decision was advised by NuRAN’s newly engaged expert in policy and regulatory affairs and follows a Ministerial Decree published on October 10 2023 which simplifies the obligations of holders of the license, specifically related to ownership requirements. Even if not considered essential to run its business as per the confirmation received in June from the Democratic Republic of the Congo telecommunications regulator called ”Agence de Regulation des Postes et Télécommunications Congolaise (ARPTC)”, the above-mentioned license will satisfy EIB’s expectations in DRC which has already been satisfied in Cameroon. The Company continues to pursue the confirmation letter from ARPTC on its current licences while the infrastructure license process is underway.
NuRAN’s efforts to bring alternative financing alongside the EIB and DFI Loans has yielded results with term sheets received from three separate groups. The first one is a CA$40 million share subscription facility in the Company equity that is expected to provide funds for general corporate purposes and working capital purposes. The facility would be available for a period of three years and could be drawn entirely at the discretion of the Company. The other is a structured debt instrument to support growth at the NuRAN Wireless (Africa) Holding level in Mauritius. The US$10M facility includes funding for countries other than Cameroon and DRC which are covered by the EIB and the other DFI and is a mix of senior debt and a subordinated mezzanine facility. The mezzanine facility will facilitate the Company meeting the debt-to-equity covenant of the EIB and the other DFI facilities.
The Company has also received a term sheet for a US$800 thousand credit facility from a local Cameroon commercial bank to support accelerated rollout in that country. The Company is in process of finalizing the agreement. The facility has limited recourse and can therefore sit alongside the EIB and the other DFI loans.