FEDERATED WIRELESS RAISES $22 MILLION.
Allied Minds' subsidiary, Federated Wireless, has raised $22 million of new equity in a Series A Preferred round from investors including Woodford Investment Management ($15 million) and Allied Minds ($5 million).The fundraising values Federated Wireless at $82 million (including new invested capital), up from $10 million. Allied Minds now owns 73% of Federated Wireless, valuing its stake at $60 million, up from $9 million.
Federated Wireless' Spectrum Access System (SAS) enables efficient sharing of spectrum resources. The cloud-based CINQ platform provides real-time management and allocation of these spectrum resources for government, telecom service providers and enterprises (including universities, hospitals, hotels, shopping malls, conference centres, stadiums, and financial institutions). Federated Wireless' platform is expected to substantially improve the throughput, performance and capacity of wireless networks in densely populated areas, including indoor environments. Extending wireless networks indoors is critical to enabling new 5G services and applications such as the Industrial Internet of Things (IoT).
The proceeds of the fundraising will enable Federated Wireless to complete its Spectrum Access System (SAS) and Environmental Sensor Capability (ESC) certification, conclude the development and accelerate the commercialisation of its cloud-hosted CINQ platform, and conduct field trials in the second half of 2016 with technology partners.
Federated Wireless has a central position in the development and setting of standards for the 3.5GHz band. This band was recently approved by the FCC for commercial use through dynamic spectrum sharing. Federated Wireless co-chairs with Google the Wireless Innovation Forum (WinnForum), which promotes the innovative use of spectrum to support essential or critical communications worldwide. Of the $22 million raised in this financing, Woodford contributed approximately $15 million for the purchase of 8,182,741 Series A Preferred shares. Woodford is a substantial shareholder of Allied Minds pursuant to the Listing Rules and thus, this transaction is a smaller related party transaction falling within the scope of Listing Rule 11.1.10R.
Prior to this fundraising, Allied Minds' last reported ownership adjusted value in Federated Wireless was $9 million. As a result of this transaction, Allied Minds contributed approximately $5 million to Federated Wireless, the total valuation of Federated Wireless increased from $10 million to $82 million (including new invested capital), and the ownership adjusted value of Allied Minds' holding in Federated Wireless increased by $51 million to $60 million for 73% of the subsidiary.
About Allied Minds
Allied Minds (LSE: ALM) is a U.S. science and technology development and commercialization company. Operating since 2006, Allied Minds forms, funds, manages and builds products and businesses based on technologies developed at U.S. universities and federal research institutions. Allied Minds serves as a diversified holding company that supports its businesses and product development with capital, central management and shared services. For more information, visit www.alliedminds.com.
About Federated Wireless
Formed in 2012, Federated Wireless, Inc. is developing scalable wireless infrastructure solutions to extend the access of carrier networks. The company's dynamic Spectrum Access Service (SAS) platform focuses on the distribution of licensed shared spectrum. Its approach incorporates a neural network of radio sensors that allow for interference-free access to low-cost, high-quality licensed spectrum, and breaks down traditional barriers of high- cost, exclusive spectrum. The company's differentiated product vision creates opportunities for more efficient approaches to spectrum. Federated Wireless is headquartered in Arlington, VA, and has offices in Boston, MA and Sunnyvale, CA.
For more information, visit www.federatedwireless.com or call 617/419-1800.
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| Publication: | Telecom Update |
|---|---|
| Date: | Mar 1, 2016 |
| Words: | 566 |
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