<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-02-09</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000844053</issuerCik>
        <issuerName>WAVERIDER COMMUNICATIONS INC</issuerName>
        <issuerTradingSymbol>WAVR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001066857</rptOwnerCik>
            <rptOwnerName>SINCLAIR D BRUCE</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>235 YORKLAND BLVD SUITE 1101</rptOwnerStreet1>
            <rptOwnerStreet2>TORONTO</rptOwnerStreet2>
            <rptOwnerCity>ONTARIO</rptOwnerCity>
            <rptOwnerState>A6</rptOwnerState>
            <rptOwnerZipCode>00000</rptOwnerZipCode>
            <rptOwnerStateDescription>ONTARIO, CANADA</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Executive Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>1999 Incentive and Nonqualified Option Plan</value>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
                <footnoteId id="F3"/>
                <footnoteId id="F4"/>
                <footnoteId id="F5"/>
                <footnoteId id="F6"/>
                <footnoteId id="F7"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.19</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-02-09</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>275000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.19</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F8"/>
            </exerciseDate>
            <expirationDate>
                <value>2015-02-08</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>275000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>275000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Non-Derivative Securities-Common Stock: Title-Common Stock; Amount Owned-229,061; Ownership-Direct</footnote>
        <footnote id="F2">Derivative Securities: Tile of Security-Purchase Option Agreement; Exercisable Anytime; Expiration Date-None;
Title-Common; Number of Shares-77,500; Price of Deriv. Security-$5.60; Number Owned at end of month-77,500, Ownership-Direct</footnote>
        <footnote id="F3">Derivative Securities: Tile of Security-Employee Stock Option (1997) Plan; Exercisable Anytime; Expiration Date 11/18/2007;
Title-Common; Number of Shares-100,000; Price of Deriv. Security-$5.60; Number Owned at end of month-100,000,
Ownership-Direct</footnote>
        <footnote id="F4">Derivative Securities: Tile of Security-Employee Stock Option (2000) Plan; Exercisable Anytime; Expiration Date 02/28/2012;
Title-Common; Number of Shares-5,000; Price of Deriv. Security-$1.60; Number Owned at end of month-5,000, Ownership-Direct</footnote>
        <footnote id="F5">Derivative Securities: Tile of Security-Employee Stock Option (2000) Plan; Exercisable 02/28/2007; Expiration Date
02/28/2012;
Title-Common; Number of Shares-5,000; Price of Deriv. Security-$1.60; Number Owned at end of month-5,000, Ownership-Direct</footnote>
        <footnote id="F6">Derivative Securities: Tile of Security-Employee Stock Option (2000) Plan; Exercisable Anytime; Expiration Date 10/10/2011;
Title-Common; Number of Shares-35,000; Price of Deriv. Security-$4.30; Number Owned at end of month-35,000, Ownership-Direct</footnote>
        <footnote id="F7">Derivative Securities: Tile of Security-Class O Warrants; Exercisable Anytime; Expiration Date 10/18/2006;
Title-Common; Number of Shares-21,500; Price of Deriv. Security-$5.00; Number Owned at end of month-21,500, Ownership-Direct</footnote>
        <footnote id="F8">Exercisable Anytime</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>D. Bruce Sinclair</signatureName>
        <signatureDate>2005-02-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
