/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR
FOR DISSEMINATION IN THE UNITED
STATES/
TORONTO, July 13, 2020 /CNW/ - Drone Delivery Canada Corp.
(TSXV:FLT) (OTC:TAKOF) (Frankfurt: ABB) (the "Company" or
"DDC") is pleased to announce that it has entered into an
agreement with Echelon Wealth Partners Inc. and Canaccord Genuity
Corp., as co-lead underwriters, on behalf of a syndicate of
underwriters (the "Underwriters"), pursuant to which the
Underwriters have agreed to purchase, on a bought deal basis,
7,143,000 units (the "Units") of the Company at a price
of $0.70per Unit (the "Issue
Price") for gross proceeds of approximately $5.0 million (the "Offering").
Each Unit will consist of one common share of the Company (each
a "Common Share") and one-half of one common share purchase
warrant (each, a "Warrant" and collectively the
"Warrants"). Each Warrant will entitle the holder thereof to
acquire one Common Share at a price of $0.95 for a period of 24 months from the closing
date of the Offering.
The Company has granted the Underwriters an option to purchase
up to an additional 15% of the Units sold under the Offering, at
the Issue Price. The Over-Allotment Option may be exercised in
whole or in part to purchase Shares, Warrants or Units as
determined by the Underwriters upon written notice to the Company
at any time up to 30 days following the Closing Date (the
"Over-Allotment Option").
The Company intends to use the net proceeds of the Offering for
capital expenditure and general corporate purposes.
The Offering will be completed (i) by way of a short form
prospectus to be filed in all of the provinces of Canada other than Quebec, (ii) on a private placement basis
in the United States pursuant to
exemptions from the registration requirements of the United
States Securities Act of 1933, as amended (the "U.S.
Securities Act") and (iii) outside Canada and the
United States on a basis which does not require the
qualification or registration of any of the Company's securities
under domestic or foreign securities laws.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of securities in the United States. The securities have not
been and will not be registered under the U.S. Securities Act or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
The Offering is expected to close on or about August 5, 2020, or such other date as the Company
and the Underwriters may agree, and is subject to customary closing
conditions, including the approval of the securities regulatory
authorities and the TSX Venture Exchange.
About Drone Delivery Canada Corp.
Drone Delivery Canada
Corp. (TSXV:FLT)(OTC:TAKOF)(Frankfurt: ABB) 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 a Software as
a Service (SaaS) model for government and corporate organizations
globally.
Drone Delivery Canada Corp. is a publicly listed company trading
on the TSX.V Exchange under the symbol FLT, on the U.S. OTC Q B
market under the symbol TAKOF, and on the Frankfurt exchange under the symbol A2AMGZ or
ABB.F.
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. 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.
SOURCE Drone Delivery Canada Corp.