NRRWF) selected for 500 additional sites and provides company update


QUEBEC CITY, QC / May 10, 2022 / NuRAN Wireless Inc. (“NuRAN” or the “Company”) (CSE:NUR)(OTC PINK:NRRWF)(FSE:1RN), a leading rural telecommunications company, is pleased to announce that it has been selected by another Tier-1 mobile network operator (“MNO”) for 500 additional telecom sites in sub-Saharan Africa. The proposal is subject to the conclusion of definitive agreements by the parties. Following the recently announced agreement with MTN Namibia as well as the successful selection of NuRAN’s rural tender for thousands of sites by a Tier 1 MNO, NuRAN is well on its way to achieving its goal of have 10,000 telecommunications sites under contract by 2026 and management believes that the rural sites and remote connectivity market recognizes NuRAN as an industry leader.

NuRAN is also pleased to provide the following corporate update on its operations:

Loan facilities from development finance institutions (DFIs)

NuRAN is pleased to announce that significant progress has been made on its previously announced Development Finance Institution (“DFI”) loan facilities, including the following milestones achieved during the recent validation process:

  • Country visits were conducted by various DFI lenders with a focus on NuRAN’s operations and suppliers. DFI lenders met with NuRAN team, Orange SA team as well as regulators and ministries.
  • One DFI has already received Investment Committee approval and only final Board approval is pending.
  • NuRAN is currently working on environmental and social governance assessments to complement this process.
  • NuRAN has also finalized the incorporation of its wholly owned subsidiary, NuRAN Wireless (Africa), domiciled in Mauritius as part of this ongoing process. The subsidiary will be the recipient of loans from the DFI as well as equity from the parent company and other investors.
  • NuRAN has amended terms with one of the DFI lenders to increase its aggregate loan amount from US$15 million to US$18 million under the same terms previously disclosed to expedite its funding plans. The amount of the additional loan is subject to the Company fulfilling certain financial covenants to be determined. The loan is subject to the conclusion of one or more definitive agreements and the satisfaction of closing conditions customary for loans of this nature.

NuRAN is pleased to announce that it has received two investment fund proposals targeting emerging market infrastructure and energy investments. The Company will disclose amounts and terms once signed. The total amount for each varies between 15 and 20 million US dollars and is intended to be invested in its new African subsidiary officially called NuRAN Wireless Africa Holding in Mauritius. The total amount is expected to allow the company to close the $30 million IFD package and meet draw down conditions.

2021 Year-End Financial Highlights (reported in CAD)

NuRAN released its 2021 audited consolidated financial statements on Monday, May 2n/a. The company was pleased to report its first significant Network as a Service (NaaS) revenue of over CA$800,000 in 2021. This represented 29 sites going live in the final months of the year and, in accordance with IFRS reporting standards, was an allocation of Minimum Guaranteed Revenues (RMG) between the sale of sites and the associated services.

The company plans to report NaaS revenue for additional sites, which should further increase the revenue line. The GMR does not include revenue sharing while several sites are already generating this revenue. The Company will continue to report on these results as it continues to grow its recurring revenue stream.

The result reflects one-time costs associated with the year’s financing activities as well as the restructuring and repayment of debt. The Company has also incurred additional expenses to establish operations in Africa, including sourcing and business set-up, a number of which will not be incurred in the coming year. Additionally, a C$1.4 million provision was reversed in 2021 following the successful resolution of Nutaq’s bankruptcy in the first quarter of 2022. As previously announced, this will allow the company to access losses. important taxes. forward.

The Company’s balance sheet reflects the significant progress made in repaying debt and building assets related to the deployment of NaaS. Inventory of over C$5m primarily reflects NaaS infrastructure owned in Cameroon and DRC for new sites to be built (cost of deployed sites was accounted for in P&L in 2021). Accrued revenue is the GMR revenue mentioned above which should be recognized over the life of the contract and does not include the services part of it nor the revenue share. Significantly improved liability positions with all convertible debentures and long-term debt repaid allow the Company to accept new funding tied to recurring NaaS revenue. Overall, the Company believes that the increase in net assets of over C$12 million reflects the impact of management’s actions during the year on fundraising, repayment of debt and building the asset base.

Operational Highlights in Cameroon:

  • 53 sites deployed to date
  • Total population covered approximately 266,121.
  • An average penetration rate of 47%, of which an average of 121,000 users connected to the NuRAN network (NuRAN’s original budget forecast was based on a penetration rate of 24%).
  • The average revenue currently generated by these sites is approximately $1,500 per site and over 60% of sites are already generating more revenue than the previously announced GMR paid by Orange, which averages $984 per site and exceeds 50% the projection of the financial model. at this stage of the project
  • Trade promotion activities have not yet started on the sites and therefore NuRAN expects increased usage and further revenue increases per site in the future.
  • Quality of Service (QoS) averages 96.77%, far exceeding the minimum requirement of 90%.
  • NuRAN now generates regular invoices to Orange Cameroon for deployed sites on a monthly basis.
  • Due to surprisingly high site performance, and at the request of Orange, NuRAN had to temporarily suspend additional site deployments to focus on upgrading existing sites to increase capacity. New deployments resumed in parallel.
  • NuRAN and Orange plan to complete the deployment of the first 122 sites in July.
  • Subject to DFI levy, 120 additional sites expected to begin rollout

in 2022.

  • Orange has already indicated that it plans to extend the scope beyond the 242 sites.

Highlights of the Democratic Republic of the Congo:

  • 29 sites in total deployed to date.
  • Total population covered approximately 217,964.
  • Average revenue per site exceeds GMR of $833 per site by 12%
  • 24 of the 29 initial sites have been stabilized and corrective measures are currently being implemented to improve energy and satellite efficiency at the other 5 sites in order to increase site performance.
  • No commercial activity has yet been launched.
  • Revamped site selection process to further increase performance
  • NuRAN plans to resume deployment in May 2022 and complete deployment of the first batch of 118 sites in July 2022.

South Sudan Highlights:

  • Site surveys and site acquisition have begun with the help of a local partner.
  • Integration of network elements is expected to be completed in May 2022
  • 20 sites should be delivered by mid-July 2022.
  • Due to the expected rainy and flooding season, it is expected that there will be a pause in further deployments from the South Sudan site from late July to late November 2022
  • 30 additional sites should be deployed in 2022.

Operational and commercial highlights:

  • NuRAN plans to deploy approximately 500 sites by the end of the year at a rate of more than 50 sites per month. Despite deployment delays due to global supply chain issues, technical and performance issues, management is confident in the Company’s ability to meet its 2022 deployment target.
  • NuRAN currently has 2,642 network-as-a-service (“NaaS”) sites under contract with Orange Cameroon, Orange Democratic Republic of Congo (DRC), MTN South Sudan and MTN Namibia. Following the recent announcement of its selection by a leading operator for several thousand sites potentially covering more than 15 countries, management expects that a significant number of these sites will be under contract, bringing the Company closer the achievement of its objective of 10,000 sites under contract.

NuRAN will continue to provide updates as sites go live and more usage data becomes available. There is no assurance that the Company will achieve the target of 10,000 contracted sites as planned or at all and the above estimates are subject to the risk factors and assumptions set out below under “Statements prospective”.

About NuRAN Wireless:

NuRAN Wireless is a leading rural telecommunications company serving the growing demand for wireless network coverage in remote and rural areas around the world. 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 effectively communicate over long distances efficiently and affordably. “Bridging the digital divide, one connection at a time.”


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