Siyata Mobile Closes CDN$4.6 Million to Brokered Private Placement of Unsecured Convertible Debentures
December 29 2017 - 3:05AM
Further to its news release dated December 13, 2017, Siyata Mobile
Inc. (the "
Company" or "
Siyata")
(TSX-V:SIM) (OTCQX:SYATF) is pleased to announce that it has
closed its previously announced brokered private placement
financing for gross proceeds of CDN$4.6 Million through the
issuance of unsecured convertible debentures (the
“
Convertible Debentures”) at a price of
CDN$1,000.00 per Convertible Debenture (the
“
Offering”). The Offering was completed through a
syndicate with PI Financial Corp., as lead agent, and including
Beacon Securities Limited and Paradigm Capital Inc. (the
“
Agents”).
Marc Seelenfreund, Chairman and Chief Executive
Officer of Siyata commented, “We are very pleased with the efforts
of our syndicate partners, resulting in an oversubscription of our
financing. The proceeds will assist Siyata in achieving our
aggressive 2018 goal of becoming a major force in the global Push
to Talk Cellular Market.”
Each Convertible Debenture will be convertible
into 1,667 common shares in the capital of the Company representing
approximately CDN$0.60 (the “Conversion Price”)
per Common Share, subject to adjustment in certain events.
Each Convertible Debenture will bear interest at
a rate of 10.5% per annum from the date of issue, payable in cash
quarterly in arrears. Any unpaid interest payments will accrue and
be added to the principal amount of the Convertible Debenture.
The Convertible Debentures will mature on June
28, 2020 (the “Maturity Date”) and are convertible
into common shares at the Conversion Price, at the option of the
holder, at any time prior to the close of business on the earlier
of: (i) the last business day immediately preceding the Maturity
Date, and (ii) the date fixed for redemption in the event of a
change of control.
Each purchaser also received one (1)
non-transferrable share purchase warrant (each, a
“Warrant”) for each CDN$1.00 principal amount of
Convertible Debentures purchased by such purchaser. Each Warrant
entitles the holder to acquire one further common share (each, a
“Warrant Share”) at an exercise price of CDN$0.70
per Warrant Share for a period of two years.
The Agents received an aggregate of
536,666 common shares of the Company in consideration of the
services provided by the Agents.
All securities issued pursuant to the Offering
are subject to a statutory hold period expiring on April 29, 2018.
Net proceeds of the Offering will be used to fund general working
capital and repay and close the credit facilities of Signifi Mobile
Inc. (a wholly owned subsidiary of the Company) with the National
Bank of Canada and with Business Development Bank of Canada and
discharge the existing security over the assets of the borrower
related thereto.
About Siyata Siyata Mobile Inc.
is a leading global developer and provider of cellular
communications systems for enterprise customers, specializing in
connected vehicle products for professional fleets, marketed under
the Uniden® Cellular brand. Since developing the world’s first 3G
connected vehicle device, Siyata has been a pioneer in the
industry, launching the world’s first 4G LTE all-in-one fleet
communications device in 2017. Incorporating voice, push-to-talk
over cellular, data, and fleet management solutions into a single
device, the company aims to become the connected vehicle
communications device of choice for commercial vehicles and fleets
around the world. Siyata also offers rugged phones for industrial
users and signal boosters for homes, buildings, and fleets with
poor cell coverage. Siyata’s customers include cellular operators,
commercial vehicle technology distributors, and fleets of all sizes
in Canada, the U.S., Europe, Australia, and the Middle East.
Visit www.siyatamobile.com and
http://www.unidencellular.com/ to learn more.
On Behalf of the Board of Directors of:
SIYATA MOBILE INC.
Marc Seelenfreund CEO and Chairman
Investor Relations: Arlen Hansen
Kin Communications 1-866-684-6730 SIM@kincommunications.com
PCG Advisory Group: Kirin Smith,
Chief Operating Officer 646.863.6519 ksmith@pcgadvisory.com
Sales Department: Glenn Kennedy,
VP Sales Siyata Mobile Inc. 416-892-1823
glenn_kennedy@siyatamobile.com
Neither 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.
This news release may include forward-looking
statements that are subject to risks and uncertainties. All
statements within, other than statements of historical fact, are to
be considered forward looking. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in forward-looking statements. Factors that
could cause actual results to differ materially from those in
forward-looking statements include market prices, continued
availability of capital and financing, and general economic, market
or business conditions. There can be no assurances that such
statements will prove accurate and, therefore, readers are advised
to rely on their own evaluation of such uncertainties. We do not
assume any obligation to update any forward-looking statements
except as required under the applicable laws.
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