TORONTO, July 13, 2020 /CNW/ – Drone Delivery Canada Corp. (TSXV:FLT) (OTC:TAKOF) (Frankfurt: ABB) (the “Company” or “DDC“) is pleased to announce that it has entered into an agreement with Echelon Wealth Partners Inc. and Canaccord Genuity Corp., as co-lead underwriters, on behalf of a syndicate of underwriters (the “Underwriters“), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 7,143,000 units (the “Units“) of the Company at a price of $0.70per Unit (the “Issue Price“) for gross proceeds of approximately $5.0 million (the “Offering“).
Each Unit will consist of one common share of the Company (each a “Common Share“) and one-half of one common share purchase warrant (each, a “Warrant” and collectively the “Warrants“). Each Warrant will entitle the holder thereof to acquire one Common Share at a price of $0.95 for a period of 24 months from the closing date of the Offering.
The Company has granted the Underwriters an option to purchase up to an additional 15% of the Units sold under the Offering, at the Issue Price. The Over-Allotment Option may be exercised in whole or in part to purchase Shares, Warrants or Units as determined by the Underwriters upon written notice to the Company at any time up to 30 days following the Closing Date (the “Over-Allotment Option“).
The Company intends to use the net proceeds of the Offering for capital expenditure and general corporate purposes.
The Offering will be completed (i) by way of a short form prospectus to be filed in all of the provinces of Canada other than Quebec, (ii) on a private placement basis in the United States pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) and (iii) outside Canada and the United States on a basis which does not require the qualification or registration of any of the Company’s securities under domestic or foreign securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The Offering is expected to close on or about August 5, 2020, or such other date as the Company and the Underwriters may agree, and is subject to customary closing conditions, including the approval of the securities regulatory authorities and the TSX Venture Exchange.
About Drone Delivery Canada Corp.
Drone Delivery Canada Corp. (TSXV:FLT)(OTC:TAKOF)(Frankfurt: ABB) is a drone technology company focused on the design, development, and implementation of its proprietary logistics software platform, using drones. The Company’s platform will be used as a Software as a Service (SaaS) model for government and corporate organizations globally.
Drone Delivery Canada Corp. is a publicly listed company trading on the TSX.V Exchange under the symbol FLT, on the U.S. OTC Q B market under the symbol TAKOF, and on the Frankfurt exchange under the symbol A2AMGZ or ABB.F.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice Regarding Forward Looking Information
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 (both in Canada and internationally). 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.
For further information: Capital Markets: Mr. Richard Buzbuzian, Telephone: (647) 501-3290, Email: firstname.lastname@example.org; Investor Relations: Mr. Michael Zahra, Chief Executive Officer, and Mr. Bill Mitoulas, Telephone: (416) 479-9547, Email: email@example.com