The news didn't come out until after Tuesday's closing bell, positioning traders to jump all over shares of DragonWave Inc. (TSX:DRWI) (NASDAQ:DRWI) in Wednesday trading action if they saw value in the announcement. Apparently they did. Toronto-listed shares were the highest moving equity listed on the TSX, ballooning more than 72% when all the dust settled.
The Ottawa-based supplier of packet microwave radio systems said that it received a product supply and installation services contract from SmartSky Networks, a North American 4G LTE inflight service provider. Details of the contract were not disclosed, but it was made known that SmartSky is flush with cash after hitting milestones and securing a $170-million Series B funding at the end of March.
DragonWave only said that SmartSky will deploy its Harmony Enhanced and Harmony Enhanced MC products to provide high-capacity backhaul for its ground to air 4G LTE network, which should promise seamless in-air connections.
After Wednesday's closing bell, DragonWave also said that it received a positive Nasdaq listing determination on Tuesday. The determination means that the company can continue to be listed on the Nasdaq exchange while it works to meet the requirement of $2.5 million in stockholder equity. DragonWave has until October 17 to fulfill the requirment. The TSX listing is unaffected by the Nasdaq notice.
After closing at an all-time low of 87 Canadian cents on Tuesday, shares of the embattled company searching for a restructuring game plan sprinted ahead 72.4% to close Wednesday at C$1.50. U.S-listed shares climbed 71.9% on the day to close at US$1.11.
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