Drone Delivery Canada Announces Increase to Bought Deal Financing
TORONTO, March 6, 2019 – Drone Delivery Canada Corp. (“DDC” or the “Company”) (TSXV:FLT), is pleased to announce, further to its news release dated March 6, 2019, that due to strong demand, it has agreed to increase the size of its previously announced bought deal offering of units (the “Units”) at a price of $1.20 per Unit, from up to 6,000,000 Units for aggregate gross proceeds of up to $7,200,000 to up to 8,350,000 Units for aggregate gross proceeds of up to $10,020,000 (the “Offering”). In addition, the Company has granted to GMP Securities L.P. (“GMP”), as sole lead agent, an option, exercisable any time not less than 48 hours prior to the closing of the Offering, to arrange for the purchase of up to an additional 1,252,500 Units. The Underwriter can elect to exercise the over-allotment option for Units only, common shares only or warrants only, or any combination thereof. If GMP’s option is exercised in full, the aggregate gross proceeds of the Offering will be $11,523,000 pursuant to the issuance of 9,602,500 Units.
Each Unit will entitle the holder thereof to receive, without payment of additional consideration, one (1) unit of the Company (each a “Unit” and collectively the “Units”) consisting of one (1) Common Share (each a “Unit Share”) and one-half of one (0.5) common share purchase warrant (each whole common share purchase warrant a “Warrant”). Each whole Warrant, subject to customary adjustments, shall be exercisable into one (1) Common Share (a “Warrant Share”) at an exercise price of $1.50 per Warrant Share for a period of 24 months from the closing of the Offering. If the volume weighted average price of the Common Shares on the TSX Venture Exchange 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 Units will be offered by way of a short form prospectus to be filed in all of the provinces of Canada. The Offering is scheduled to close on or about March 25, 2019. The size of the Offering was increased by agreement between the Company and GMP.
The Offering is subject to the receipt of all necessary regulatory and stock exchange approvals. This news 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 U.S. registration or an applicable exemption from U.S. registration requirements.