This week NuRAN Wireless (CSE: NUR) (OTC: NRRWF) announced significant news that the Government of Québec and its Créativité Québec program are providing a credit loan facility to the Company for up to CAD$3,000,000. The Créativité Québec was designed to fund companies with innovative projects, funding them anywhere from $50,000 - $5,000,00 to acquire new technology or to develop or improve products and processes.
We believe that this credit facility is a major win for management and investors of NuRAN. It will help the Company push its expansion and growth strategy. Furthermore, financing in the small-cap space are frequently dilutive in nature for shareholders, whether in the form of a private placements or other derivatives. This financial support enables NuRAN to accelerate the development of the it’s operations in a non-dilutive fashion. Funds will likely be deployed for the roll out of LiteCell xG units which are a multi standard base station that provides 2G, 3G and 4G connectivity to Tier One operator networks for clients such as Africa Mobile Networks.
Another important piece of information we believe investors should note, is that it is incredibly difficult for any small-cap security to obtain a loan with a major bank or governmental body in general. A $3 million finance would not have been approved without extensive due diligence by the government of Quebec into NuRAN. Some areas the government would likely focus on are recent financial statements (P&L, AR, AP, Balance Sheet,) sales forecasts, operational plans, cash flow analysis, business/marketing plan, cash flow projections, project/research/development plans, and financial forecasts.
We also believe this funding from the Province of Québec puts NuRAN on the map as a potential supplier of wireless technology across Québec. The recently elected Coalition Avenir Québec has stated that they will be working hard to bring more connectivity to the residents of rural areas that have limited or no access at all. With NuRAN Wireless being based in the heart of the province (Québec City), a loan facility from the government of Québec and now with a Canadian 5G patent recently granted to NuRAN. We believe that there is a high probability that NuRAN Wireless could receive further support from the Québec government in the form of new purchase orders. Million in the next four years from provincial, federal and private sources to fulfill this commitment. As highlighted in our previous article titled New Government Presents New Opportunities NuRAN Wireless , the new government intends to deliver more internet and cellular coverage to the residents in need. There are currently plans to invest approximately $400
In conclusion, we believe that this loan is truly the beginning of NuRAN’s growth cycle as the Company now has access to sufficient capital to grow its operations both domestically and internationally as well as bolster its IP and R&D efforts.
Forward Looking Statements: This article may contain "forward-looking information" (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections as of the date of the content is published on this website. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify these forward- looking statements. Information in this article has been furnished for your information only, is accurate at the time of posting, and may be superseded by more current information. Except as required by law, we do not undertake any obligation to update the information, whether as a result of new information, future events or otherwise. This article should not be considered as personal financial advice. Full Disclosure: The company NuRAN Wireless is a paid client of Equity Insight. Directors of Equity Insight may buy, hold or sell the securities before during or after this publication.