Convergence Wireless, Inc. to Raise US$24 Million in a Regulation D Offering
Convergence Wireless Inc. (CWI), a global leader in holistic wireless smart building solutions, recently commenced an Offering to raise US$24 million in order to fulfill existing orders and to fund aggressive expansion plans through 2022.
NEWPORT BEACH, Calif., Oct. 02, 2018 /PRNewswire-PRWeb/ -- Convergence Wireless Inc. (CWI), a global leader in holistic wireless smart building solutions, recently commenced an Offering to raise US$24 million in order to fulfill existing orders and to fund aggressive expansion plans through 2022. The Company intends to accomplish this via a Regulation D Offering for Accredited Investors.
This Offering will be in the form of Series B Preferred Stock, which is convertible into Convergence Wireless' common stock at any time. The Series B shares are priced at US$18.50 per share, and the Company is allowing discounted share pricing of 5% to 20% for Accredited Investors who invest at least US$1 million, with deeper discounts for greater amounts invested.
"We are truly in a great position," declared Convergence Wireless Founder Tim Hirou, "as we have over US$1.3 million in existing purchase orders and more than US$800 million total in Letters of Intent (LOIs) from our major clients and channel partners. We are currently not in need of new business, and our main focus is securing the funding necessary to ramp up our installation capacity and operational requirements."
Chief Financial Officer John Zazzera, along with Convergence Wireless' Executive Committee Officers, spent the last two weeks meeting with potential investors in New York, London, Singapore, Hong Kong, and Dubai. Mr. Zazzera stated, "Our goal is to become a US$500 million company by 2022, and with the strength of our Brand, our intellectual property, and the impressive number of customer commitments that we have lined up, we should be well on our way to realizing that goal with the completion of this Raise."
According to Stratistics MRC, the Global Smart Building market is expected to grow from US$15 billion currently to US$57.81 billion by 2023, with a CAGR of 31.5%. "The Stratistics MRC projections are quite remarkable," emphasized Mr. Zazzera. "This would mean that even if we achieve our 2022 targets, Convergence would still generate significantly less than 1% of the global revenue in our market sector."
"As predicted, the Smart Buildings arena is so hot right now," pointed out Mr. Hirou. "Two of our four main competitors highlighted in the Convergence Wireless Business Plan were recently acquired for approximately US$70 million (September, 2018) and US$77 million (2016), and unlike the Convergence Wireless' 100% wireless and 100% battery-free advanced lighting control system, CWI's two competitors' systems are not even fully wireless or battery-free."
"With two recent offers to acquire Convergence, and with all of the consolidation currently happening within the sector, the next few years will be very exciting for Convergence Wireless, indeed!" exclaimed Mr. Hirou.
Additional Convergence Wireless Offering Details
The Series B Preferred will not be registered under the Securities Act of 1933 or U.S. state securities laws, and can only be purchased in the Offering by "Accredited Investors" as defined under Regulation D of the Securities Act. Via the Series B Preferred liquidation preference, the holder may receive either the return of the applicable price paid per share or the amount that the holders of common stock are receiving per share (i.e., if the holder elects to convert to common stock prior to the liquidation event).
The minimum subscription amount for the Series B Preferred is US$100,000, and there is no minimum aggregate amount for this Offering. The maximum aggregate amount for this Offering is US$24 million. However, the Company reserves the right to sell more or fewer shares in the Offering, to cancel or to modify this Offering at any time, to reject subscriptions for Series B Preferred in whole or in part, and/or to waive certain conditions for the purchase of the Series B Preferred.
About Convergence Wireless, Inc.
Headquartered in Newport Beach, CA, the original focus of Convergence Wireless, Inc. was advanced wireless lighting control and monitoring solutions for commercial buildings. CWI's system is currently the only truly 100% wireless and 100% battery-free lighting control and monitoring system in the global marketplace. CWI's wireless and battery-free nature, coupled with its patent-pending automated commissioning technology, results in CWI systems costing significantly less to install and maintain than those of its competitors. Convergence Wireless Founder Tim Hirou originally drew upon his expertise in robotics and automation in order to create a patent-pending CWI commissioning system where it only takes 160 hours for one person to fully commission 1,000,000 ft.² (100,000 m²) of floor space. In general, the overall result is greater profit margins for Convergence Wireless due to lower labor costs.
In addition to its pioneering advanced lighting control system, Convergence Wireless is currently providing holistic wireless solutions for commercial buildings by adding wireless control and monitoring of heating, ventilation, and air conditioning (HVAC), and plug loads, all complemented by electricity submetering. These solutions are all fully integrated via CWI's distributed architecture enterprise software platform, which seamlessly connects entire building portfolios' real-time control and end-to-end energy analytics data. Integrating Department of Defense-level cybersecurity that it has built into its solution, Convergence Wireless is able to securely deliver this information to Fortune 500 companies' top management, dramatically increasing operational efficiency while significantly reducing the overall corporate energy spend.
For more information, contact:
Tim Hirou
Founder, Convergence Wireless, Inc.
23 Corporate Plaza Drive, Suite 100
Newport Beach, California 92660
+1 949 444 1723
thirou(at)convergencewireless(dot)com
John Zazzera
Chief Financial Officer, Convergence Wireless, Inc.
23 Corporate Plaza Drive, Suite 100
Newport Beach, California 92660
+1 401 585 7296
jzazzera(at)convergencewireless(dot)com
SOURCE Convergence Wireless, Inc.
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