UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report Of Foreign Private Issuer
Pursuant To Rule 13a-16 Or 15d-16 Of
The Securities Exchange Act Of 1934
FOR THE MONTH OF OCTOBER, 2016
COMMISSION FILE NUMBER: 001-34491
DRAGONWAVE INC.
(Translation of registrants name into English)
411 Legget Drive, Suite 600
Ottawa, Ontario, K2K 3C9
Canada
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
xForm 20-F oForm 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: o Yes x No
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
The following exhibits are issued by DragonWave Inc.:
Exhibit Number |
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Description |
99.1 |
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Press Release dated October 21, 2016 DragonWave Shareholders Equity LetterNASDAQ |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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DRAGONWAVE INC. |
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(Registrant) |
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By: |
/s/ Patrick Houston | |
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Name: |
Patrick Houston | |
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Title: |
Chief Financial Officer | |
Date: October 21, 2016
Exhibit 99.1
DragonWave Shareholders Equity LetterNASDAQ
OTTAWA, CANADA October 21, 2016 DragonWave Inc. (TSX:DWI; NASDAQ:DRWI) (DragonWave or the Company) a leading global supplier of packet microwave radio systems for mobile and access networks, announced that on October 17, 2016, it received a written notice from the Listing Qualifications Staff of The Nasdaq Stock Market (Nasdaq) notifying the Company that it no longer complies with Nasdaq Listing Rule 5550(b)(1) due to the Companys failure to maintain a minimum of $2,500,000 in shareholders equity (the Minimum Shareholders Equity Requirement) or any alternatives to such requirement. The Company reported shareholders equity of $1,662,000 for the period ended August 31, 2016.
Nasdaqs notice has no immediate effect on the listing of the Companys common shares on The Nasdaq Capital Market. Under Nasdaq Listing Rule 5810(c)(2), the Company has 45 days, or until December 1, 2016, to provide Nasdaq with a plan to regain compliance with the Minimum Shareholders Equity Requirement. If Nasdaq accepts the Companys plan, Nasdaq may grant an extension of up to 180 calendar days from the date of the notice, or until April 15, 2017, to evidence compliance with the Minimum Shareholders Equity Requirement.
The Company plans to regain compliance with the Minimum Shareholders Equity Requirement and intends provide Nasdaq with a plan on or before December 1, 2016.
Trading of DragonWave common shares on the Toronto Stock Exchange under the symbol DWI is not affected by the notice from Nasdaq.
About DragonWave
DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWaves carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWaves products is wireless network backhaul, including a range of products ideally suited to support the emergence of underlying small cell networks. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWaves corporate headquarters are located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit http://www.dragonwaveinc.com.
DragonWave®, Horizon® and Avenue® are registered trademarks of DragonWave Inc.
Non-GAAP Financial Measures
This press release contains certain information that is not consistent with financial measures prescribed under GAAP. We break out Gross profit before inventory provisions as this measure allows management to evaluate our operational performance and compare to prior periods more effectively. Gross profit before inventory provisions does not have any standardized meaning prescribed by GAAP, it is therefore unlikely to be comparable to similar measures presented by other issuers and is not designed to replace other measures of financial performance or the statement of operations as an indicator of performance. This measure should not be considered in isolation or as a substitute for other measures of performance calculated according to GAAP. We believe that it is useful to compare gross profit results without the impact of inventory provisions, since our inventory provisions generally relate to technical obsolescence and excess due to market changes. We believe this non-GAAP measure also provides investors with a better ability to understand our operational performance. We calculate Gross profit before inventory provisions consistently over each fiscal period.
The most directly comparable GAAP measure presented in our consolidated financial statements for the three and six months ended August 31, 2016 to Gross profit before inventory provisions is Gross profit.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements or forward-looking information as defined by applicable securities laws. Forward-looking statements include statements as DragonWaves ability to regain compliance with the minimum shareholders equity requirement or any alternative thereto and maintain its listing on the NASDAQ Capital Market. These statements are subject to certain assumptions, risks and uncertainties. .
Forward-looking statements are provided to help external stakeholders understand DragonWaves expectations as of the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements. DragonWaves actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements, as a result of the risks identified above as well as other risks identified in our publicly filed documents. Material risks and uncertainties relating to our business are described under the heading Risks and Uncertainties in the MD&A dated October 12, 2016 and in the Companys Annual Information Form and other public
documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at www.sedar.com and www.sec.gov, respectively. DragonWave assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
Investor Contact: |
Media Contact: |
Media Contact: |
Peter Allen |
Nadine Kittle |
Becky Obbema |
President & CEO |
Marketing Communications |
Interprose Public Relations |
DragonWave Inc. |
DragonWave Inc. |
(for DragonWave) |
investor@dragonwaveinc.com |
nkittle@dragonwaveinc.com |
Becky.Obbema@interprosepr.com |
Tel: +1-613-599-9991 ext 2222 |
Tel: +1-613-599-9991 ext 2262 |
Tel: +1-408-778-2024 |