Drone Delivery Canada Announces $6.0 Million Bought Deal Public Offering
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Nov. 30, 2020 /CNW/ - Drone Delivery Canada Corp. (TSXV: FLT) (OTC: TAKOF) (the "Company" or "DDC") is pleased to announce that it has entered into an agreement with a syndicate of investment dealers co-led by Cormark Securities Inc. and Echelon Wealth Partners Inc. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase 6,820,000 units (the "Units") from the treasury of the Company, at a price of $0.88 per Unit and offer them to the public by way of short form prospectus for total gross proceeds of approximately $6,001,600 (the "Offering").
Each Unit will consist of one common share (each a "Common Share") of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant" and collectively the "Warrants") of the Company. Each Warrant will entitle the holder thereof to purchase one Common Share at a price equal to $1.20 for a period of 24 months.
In addition, the Company has granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 15% of the Units of the Offering on the same terms exercisable at any time up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any.
The Company intends to use the net proceeds of the Offering for capital expenditures and general corporate purposes.
Closing of the Offering is expected to occur on or about December 22, 2020 and is subject to regulatory approval including that of the TSX Venture Exchange (the "Exchange").
The Units to be issued under the Offering will be offered by way of a short form prospectus in each of provinces of Canada, other than Quebec, and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws, and certain other jurisdictions outside of Canada and the United States.
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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press 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 registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements. |
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