Toronto, Ontario—February 23, 2017
Drone Delivery Canada Corp. (“DDC” or the “Company”) (CSE:FLT), is pleased to announce, further to its news release dated February 6, 2017, that due to strong demand, it has agreed to increase the size of its previously announced private placement offering of special warrants (the “Special Warrants”) at a price of $0.35 per Special Warrant, from up to 20,000,000 Special Warrants for aggregate gross proceeds of up to $7,000,000 to up to 30,000,000 Special Warrants for aggregate gross proceeds of up to $10,500,000 (the “Offering”). In addition, the Company has granted to GMP Securities L.P. (“GMP”), as sole lead agent, an option, exercisable any time not less than 48 hours prior to the closing of the Offering, to arrange for the purchase of up to an additional 4,500,000 Special Warrants. If GMP’s option is exercised in full, the aggregate gross proceeds of the Offering will be $12,075,000 pursuant to the issuance of 34,500,000 Special Warrants.
Each Special Warrant will entitle the holder thereof to receive, without payment of additional consideration, one (1) unit of the Company (each a “Unit” and collectively the “Units”) consisting of one (1) Common Share (each a “Unit Share”) and one-half of one (0.5) common share purchase warrant (each whole common share purchase warrant a “Warrant”). Each whole Warrant, subject to customary adjustments, shall be exercisable into one (1) Common Share (a “Warrant Share”) at an exercise price of $0.45 per Warrant Share for a period of two (2) years from the closing of the Offering. If the volume weighted average price of the Common Shares on the Canadian Securities Exchange is equal to or greater than $1.00 for a period of 10 consecutive trading days then the Company may anytime thereafter accelerate the expiry date of the Warrants to the date that is 30 days following the date on which the Company issues notice to all the Warrant holders of the new expiry date. The Company will also issue a press release on the same date as it issues notice confirming the new expiry date of the Warrants.
Each Special Warrant shall be voluntarily exercisable at any time by the holder thereof. Each Special Warrant not previously exercised will be automatically exercised, without payment of additional consideration and without any further act of the holder thereof, into one (1) Unit on the earlier of: (i) the date which is one hundred and twenty (120) days following the closing of the Offering; and (ii) the fifth (5th) business day after a receipt is issued to the Company by the applicable securities commission for a final prospectus qualifying the distribution of the Units (the “Qualification Date”). In the event the Qualification Date has not occurred prior to 5:00 p.m. (Toronto time) on the date which is ninety (90) days following the closing of the Offering, each unexercised Special Warrant will thereafter entitle the holder to receive upon the exercise or automatic exercise thereof, for no additional consideration, 1.05 Units in lieu of one (1) Unit. Unless a receipt is issued to the Company by the applicable securities commission for a final prospectus qualifying the distribution of the Units, securities issued in connection with the Offering will be subject to a 4-month hold period from the date of closing of the Offering.
The size of the Offering was increased by agreement between the Company and GMP.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
For more information, please visit www.dronedeliverycanada.com.
About Drone Delivery Canada
Drone Delivery Canada is a drone technology company focused on the design, development and implementation of its proprietary logistics software platform utilizing drones. The Company’s platform will be used as Software as a Service (SaaS) for government and corporate organizations. Drone Delivery Canada Corp. is a publicly listed company trading on the Canadian Securities Exchange under the symbol FLT.
Richard Buzbuzian, President, Drone Delivery Canada
Telephone: (647) 501-3290
Bill Mitoulis, Investor Relations, Drone Delivery Canada
Telephone: (416) 837-7147
Nelson Hudes, Media Relations, Drone Delivery Canada
Telephone: (905) 660-9155
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking information. The parties undertake no obligation to update forward-looking information except as otherwise may be required by applicable securities law.