Quebec, QC, Canada, August 30, 2024 – NuRAN Wireless Inc. (“NuRAN” or the “Company”) (CSE: NUR) (OTC: NRRWF) (FSE: 1RN), a leading supplier of mobile and broadband wireless infrastructure solutions, is pleased to announce its financial results for the second quarter ended June 30, 2024:
Highlights of the Company’s financial results for the three months ended June 30, 2024, include the following:
- Revenue of $1,512,457 compared to $602,255 for the three months ended June 30, 2024, an increase of 151%, largely attributed to the Network as a Service (“NaaS”) revenue growth including the billing of revenue in Cameroon related to 2023 not yet invoiced;
- Gross profit of $1,188,180 compared to $(217,531) for the three months ended June 30, 2024, an increase of 646%. At 79% for the quarter, the results reflect the company’s current gross margin in Cameroon;
- Total expenses of $4,005,534 compared to $2,530,023 for the three months ended June 30, 2024, an increase of 58%, largely attributed to an increase in financial expenses related to short term borrowings and costs incurred in finalising the FEI bridge facility;
- Net Loss of $2,425,6969 compared to $2,823,600 for the three months ended June 30, 2024, a decrease of 14%.
Highlights of the Company’s financial results for the six months ended June 30, 2024, include the following:
- Revenue of $2,085,634 compared to $1,270,161 for the six months ended June 30, 2024, an increase of 64%, directly attributable to the increase in live NaaS sites and CAPEX sales including partial delivery of the 2G/3G core network in the Marshall Islands;
- Gross profit of $1,232,978 compared to $30,798 for the six months ended June 30, 2024, an increase of 3903%;
- Total expenses of $6,892,784 compared to $5,783,623 for the six months ended June 30, 2024, an increase of 19%;
- Net Loss of $4,882,809 compared to $6,175,514 for the six months ended June 30, 2024, a decrease of 21%.
“The results for the quarter are trending in the right direction, extremely encouraging and are starting to reflect the scale of our operations and what should be expected in terms of metrics from the NaaS business model”, said Jim Bailey, CFO of NuRAN Wireless. “Looking forward, we expect our SG&A to remain relatively flat while we drive towards positive EBITDA. We finalized two major financings at the start of Q3 representing a turning point for NuRAN as we anxiously add new sites to build scale. We look to replicate the proven site economics in Cameroon by deploying sites in inventory, with low incremental spend required, in Cameroon and DRC. We’ll also use these funds to build critical mass in new recently signed countries working with our strategic partners and new investors and lenders to continue to extend communications in hard-to-reach rural locations”.
Highlights from the Quarter and Recent Highlights Include:
- On April 26, 2024, NuRAN announced the execution of a two-year term loan facility agreement (the “Loan Facility”) in the principal amount of US $5M with the Facility for Energy Inclusion (“FEI”), a fund managed by Cygnum Capital following final Investment Committee approval announced on February 29th, 2024. The Company reported later on July 5, 2024, the official closing and received initial drawdown to resume the rollout in Cameroon;
- On May 15, 2024, the Company announced that NuRAN Wireless Africa Holding, a wholly owned subsidiary of NuRAN, has signed a non-binding Term Sheet and a Mandate Letter with a Global Asset Management Company (“The Lender“ and “The Lead Arranger“) for a long-term senior secured credit facility (the “Loan Facility”) of which US$ 15,000,000 is to be provided by The Lender. The Loan Facility will include a mechanism for the Lead Arranger to increase the facility to up to US$70,000,000 in funding including a syndication of other lenders. This financing will facilitate the procurement and installation of network infrastructure sites across several African countries;
- On June 5, 2022, the Company announce a US$ 27 million five-year Network-As-A-Service (“NaaS”) agreement with MTN (JSE: MTN) for the deployment of 250 sites in Africa under the NaaS business model further to its Group Framework Agreement (“GFA”) in place with the MTN Group announced on July 21, 2022;
- On July 16, 2024, NuRAN announced a US$ 32.2 million NaaS agreement for up to 200 sites with MTN Benin (JSE: MTN) for the deployment of rural 2G, 3G and 4G sites under the Network-as-a-Service (“NaaS”) business model in Benin, West Africa. The 5-year agreement with MTN Benin now places NuRAN in 8 countries for 5092 sites throughout Sub-Saharan Africa with NaaS agreements signed. The contract includes a renewal for an additional 5 years at the end of the initial term. This agreement has been signed under the MTN Framework Agreement announced on July 21, 2022, serving as further evidence of the strong partnership between MTN and NuRAN both dedicated to empowering lives in rural communities across Africa;
- On July 16, 2024, the Company announced that the initial US$ 2.5M drawdown from the Facility for Energy Inclusion (“FEI”) has been received allowing for the resumption of site construction;
- On August 19, 2024, NuRAN announced the closing of a non-brokered private placement of an unsecured convertible debenture (the “Debenture”) for aggregate gross proceeds of US$ 1.6M. The Debenture has a two-year term and accrues interest at a rate of 15% per annum until the Maturity Date. The principal amount of Debenture is US$2,194,772 after application of an original issuance discount of 25% and including all applicable fees. The Debenture may be converted into units of the Company (each, a “Unit”) at a conversion price of CDN$ 0.225 per Unit (the “Conversion Price”) with each Unit consisting of one common share and one common share purchase warrant exercisable into one common share at a price of CDN$ 0.25. Under the terms of the Debenture, the Company also granted a participation right in future equity financings up to a 9.9% equity interest in the Company.
About NuRAN Wireless:
NuRAN Wireless is a leading rural telecommunications company that meets the growing demand for wireless network coverage in remote and rural regions around the globe. With its affordable and innovative scalable solutions of 2G, 3G, and 4G technologies, NuRAN Wireless offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and affordably. “Bridging the Digital Divide, One Connection at a Time.”
Additional Information:
For further information about NuRAN Wireless: www.nuranwireless.com
Francis Létourneau,
Director and CEO
Francis.letourneau@nuranwireless.com
Tel: (418) 264-1337
Frank Candido
Investor relations
Frank.candido@nuranwireless.com
Tel: (514) 969-5530
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes. Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Nuran, that may cause the actual results, level of activity, performance or achievements of Nuran to be materially different from those expressed or implied by such forward looking statements, including but not limited to management’s business strategy for 2024. Although Nuran has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Nuran”s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither Nuran assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. Accordingly, readers should not place undue reliance on forward looking information. Other factors which could materially affect such forward-looking information are described in the risk factors in the Company’s most recent annual management’s discussion and analysis that is available on the Company’s profile on SEDAR at www.sedar.com.
