/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, March 6, 2019
/CNW/ - Drone Delivery Canada Corp. (TSX.V:FLT – OTCQB: TAKOF)
("Drone Delivery" or the "Corporation") announced today that it has
entered into an agreement with GMP Securities L.P. (the
"Underwriter"), pursuant to which the Underwriter has agreed to
purchase, on a bought deal basis pursuant to the filing of a short
form prospectus, 6,000,000 units (the "Units") of the Corporation
at a price of $1.20 per Unit (the
"Offering Price") for aggregate gross proceeds to Drone Delivery of
$7,200,000 (the "Offering").
Each unit shall consist of one common share and one half common
share purchase warrant (a "Warrant"), with each Warrant entitling
the holder to purchase one common share at a price of $1.50 until 24 months after the Closing Date. If
the volume weighted average price of the Common Shares on the TSXV
is equal to or greater than $2.00 for
a period of 10 consecutive trading days then the Company may
anytime thereafter 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 has agreed to grant the Underwriter an
over-allotment option to purchase up to an additional 900,000 Units
at the Offering Price, exercisable in whole or in part, at any time
on or prior to the date that is 30 days following the closing of
the Offering. If this option is exercised in full, an
additional $1,080,000 in gross
proceeds will be raised pursuant to the Offering and the aggregate
gross proceeds of the Offering will be $8,280,000.
The Units will be offered by way of a short form prospectus to
be filed in all provinces of Canada (except Quebec). The Company intends to use the net
proceeds from the Offering to further build out the Company's
international drone delivery logistics platform, including the
recent agreement with Toyota Tsusho Canada Inc., scaling the
management and the sales team, providing additional resources for
the commercialization roll out, for new projects, and for working
capital and general corporate purposes. The Offering is
expected to close on March 25, 2019
and is subject to certain conditions including, but not limited to,
the receipt of all necessary regulatory and stock exchange
approvals, including the approval of the Canadian Securities
Exchange and the applicable securities regulatory authorities.
The securities being offered 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, using drones. The Company's platform
will be used as Software as a Service (SaaS) for government and
corporate organizations and looks to derive revenue from
Integration fees, Set Up fees and Drone Delivery Flights based upon
a take or pay model nationwide.
Drone Delivery Canada Corp. is a publicly listed company trading
on the TSX.V Venture Exchange under the symbol FLT, and on the U.S.
OTC Q B market under the symbol TAKOF.
Notice Regarding Forward Looking Statements
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. 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.
SOURCE Drone Delivery Canada Corp.