THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
TORONTO, ONTARIO – March 25, 2019 – Further to its press releases dated March 6, 2019, Drone Delivery Canada Corp. (TSXV: FLT, OTC: TAKOF) (the “Company”) is pleased to announce today that it has closed its previously announced bought-deal prospectus offering (the “Offering”) underwritten by GMP Securities L.P., Canaccord Genuity Corp. and Echelon Wealth Partners Inc. (collectively, the “Underwriters”), pursuant to which the Company issued an aggregate of 8,350,000 units (the “Units”) of the Company, at the purchase price of $1.20 per Unit (the “Issue Price”), for aggregate gross proceeds of $10,020,000. Each Unit consists of one common share in the capital of the Company (each a “Share”) and one-half of one Share purchase warrant of the Company (each whole such warrant a “Warrant”). Each Warrant entitles the holder to purchase one Share at a price of $1.50 until March 25, 2021. If the volume weighted average price of the Shares on the TSX Venture Exchange is equal to or greater than $2.00 for a period of 10 consecutive trading days, then the Company may within ten business days 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. The TSX Venture Exchange has conditionally approved the listing of the Warrants, subject to standard listing conditions. The Warrants are expected to commence trading on or about March 28, 2019.
The Units were offered by way of a short form prospectus filed in all provinces of Canada. The Company intends to use the net proceeds from the Offering to expand its commercial operations plan in Canada and potentially internationally by introducing larger, heavier-lifting drones to its fleet. Management and consultants of the Company invested an aggregate of $1,260,000 pursuant to the Offering.
The Company has granted the Underwriters an over-allotment option to purchase up to an additional 1,252,500 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to April 24, 2019. The Underwriters were paid a cash commission equal to 6% of the gross proceeds raised, and were issued an aggregate of 250,500 compensation option (“Compensation Options”), each Compensation Option entitling the holder to one Unit at the Issue Price until March 25, 2021.
The securities issued pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About Drone Delivery Canada Corp.
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.
Tony Di Benedetto, Chief Executive Officer, Drone Delivery Canada Corp. Email: email@example.com
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, including the use of proceeds of the Offering. 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.