TORONTO, ONTARIO – April 12, 2019 – Further to its press release dated March 6, 2019 and March 25, 2019, Drone Delivery Canada Corp. (TSXV: FLT, OTC: TAKOF) (the “Company”) is pleased to announce that in connection with 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”), the Underwriters have partially exercised their over-allotment option, today purchasing an additional 344,200 common share in the capital of the Company (each a “Share”), and 626,250 Share purchase warrants of the Company (each whole such warrant a “Warrant”) for additional proceeds of $482,352. 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 (the “TSXV”) 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 Company initially issued 8,350,000 Shares and 4,175,000 Warrants for gross proceeds of $10,020,000 on March 25, 2019. Upon closing of the over-allotment option, the Company will have raised aggregate gross proceeds of $10,502,352.
The securities 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.
In connection with the partial exercise of the over-allotment option, the Underwriters were paid a cash commission equal to 6% of the gross proceeds raised, and were issued an aggregate of 23,951 compensation option (“Compensation Options”), each Compensation Option entitling the holder to one Share and one-half of one Warrant for $1.20 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 Corp. 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.