RE:RE:Convertible debentures
ON--(Marketwired - August 31, 2016) - NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. Delivra Corp. (TSX VENTURE: DVA) ("Delivra" or the "Company") announces that it intends to complete a non-brokered private placement of unsecured convertible debentures (the "Private Placement") in an aggregate principal amount up to approximately $2,000,000. The Financing will include the issuance of debentures (the "Debentures") maturing one (1) year from the date of issuance and bearing interest at a rate of 6% per annum. The Debentures are convertible into units of the Company ("Debenture Units") at a price per unit equal to $0.55. Each Debenture Unit will be composed of one (1) common share of the Company and one-half (1/2) of a common share purchase warrant, each such whole warrant being exercisable for one (1) common share of the Company at a price per share of $0.80, for a period of 18 months from the date of issuance. The Debentures are subject to automatic conversion on the earlier of (i) four months and one day from the date of issuance of the Debentures, and (ii) the third business day following the date that a receipt is issued for a final prospectus qualifying the distribution of the common shares and common share purchase warrants issuable on conversion of the Debentures. If the Company completes a public offering of securities having an associated issuance price of $0.50 or less in advance of such automatic conversion of Debentures, the Company will issue an additional one quarter of one (1/4) common share purchase warrant with each Debenture Unit. Purchasers of Debentures under the Private Placement will also receive 20% of the aggregate value of Debentures purchased in common share purchase warrants of the Company ("Warrants"). Each whole Warrant will be exercisable for one (1) common share of the Company at a price per share of $0.75 for a period of 18 months from the date of issuance. For example, a purchaser of $100,000 in principal amount of Debentures will also receive 20,000 Warrants. In connection with the Private Placement, the company may pay finders' fees in cash or securities or a combination of both, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the Private Placement will be subject to a four-month hold period. The Private Placement is subject to approval by the TSX Venture Exchange.