Redline announces $14M in funding from Canadian government for 5G development
The Strategic Innovation Fund will reimburse 40% of eligible costs incurred for specified research and development projects to be undertaken by the Redline over the next 4 1/2 years.
Research & Development
Technology / IIoT
TORONTO — On Mar. 31, Redline Communications Group Inc., a provider of industrial wireless broadband network connectivity solutions, announced the signing of a contribution agreement by the Government of Canada Strategic Innovations Fund to accelerate the development of mission critical Industrial 5G products and solutions.
As most wireless vendors cater to mobile network operators (MNO), there is a clear gap in the industrial 5G (i5G) market that will hope to be addressed by this investment.
The investment by the SIF will accelerate the development of the world’s first i5G platform catering to Mission Critical Private Network customer, adopters of Industry 4.0. This coming wave of IoT data driven operations, from manufacturing to mining, needs a highly reliable, smart wireless network to accompany it, tailored to the unique and highly demanding industrial customer.
“This investment will accelerate the innovative development of products and solutions for mission critical industrial networks developed in conjunction with our leading customers worldwide,”, stated Stephen Sorocky, Redline’s CEO. “We express our appreciation for the confidence shown by the Strategic Innovations Fund in their support to creating a world leading team of highly skilled staff and increased collaboration with universities.”
Under the terms of the agreement, the SIF will reimburse 40% of eligible costs incurred for specified research and development projects to be undertaken by the Company estimated to total $37 million over a period of 4 ½ years. A maximum of $14 million is available to the Company by way of a repayable loan. The SIF project period runs from August 2020 to April 2025. Cost reimbursements under the SIF program will be provided to Redline on a quarterly basis based upon the eligible spending of the prior quarter. Reimbursements will commence in the period following execution of the agreement. Amounts received by the Company under the SIF program are repayable, based upon revenues of the Company, beginning in April 2028 for a period of up to 15 years concluding in 2043. The maximum amount repayable by the Company is 1.45 times the reimbursed funds. The SIF program also has certain conditions related to Canadian employment, employment conditions, ownership of R&D and other matters and financial covenants, including change of control of the Company.