Last Mile Holdings Closes First Tranche in C$7,800,000 Oversubscribed Non-Brokered Private Placement

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VANCOUVER, BC, Aug. 19, 2020 /CNW/ - Last Mile Holdings Ltd.("MILE" or the "Company") (TSXV: MILE) (OTC: AZNVF), a leading micro-mobility company with the broadest product suite in the industry, today announced the closing of the first tranche ("First Tranche") of its previously announced private placement of up to $7,000,000. To meet increased demand for the Offering (the "Offering"), the Company is increasing the Offering by an additional 10,818,380 Units at $0.075 per unit, bringing the total potential gross proceeds to $7,811,378, subject to TSX Venture Exchange approval.

The First Tranche consisted of a total of 33,228,334 units (the "Units") at a price of $0.075 per Unit for gross proceeds raised of $2,492,125. Each unit consists of one limited voting share and one share purchase warrant, with each warrant exercisable for a period of two years at $0.11 per share, subject to acceleration at the option of the Company if closing price of the limited voting shares of the Company is at or above C$0.20 per share for ten consecutive trading days. In connection with the First Tranche, the Company paid $92,163.76 and 1,228,850 broker warrants to certain finders. The broker warrants are exercisable for a period of two years at $0.075 per share. All shares and warrants issued are subject to a four-month hold period, expiring December 20, 2020.

Insiders of the Company, including MILE chairman and significant shareholder Louis Lucido are participating for $1,650,000 to be included in the second tranche.

The net proceeds from the Offering will be used for general working capital purposes as well as to purchase approximately 4,000 new e-bikes and scooters, which will be deployed to meet contractual agreements with 10 municipalities and universities for shared mobility systems.

"The successful close of this offering will allow us to continue in our clearly-defined path for growth and future EBITDA profitability," said MILE CEO Max Smith. "We are looking forward to closing our second tranche shortly and moving full speed ahead to execute our strategy of long-term contracts with city and university partners."

The final closing of the Offering of up to an additional of $5,319,253 million (the "Final Tranche") is anticipated to be no later than August 24, 2020. Closing of the Final Tranche is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the approval of the Exchange.

For more information on Last Mile Holdings, visit lastmile-holdings.com.

About Last Mile Holdings
Last Mile Holdings (TSXV: MILE), formerly OjO Electric, is one of the largest micro-mobility companies in the U.S., offering the broadest product suite in the industry. Last Mile has 30 university and 50 municipal contracted shared mobility systems under the OjO and Gotcha brands. The acquisition of Gotcha in the first quarter of 2020 provides an expansive growth pipeline and a portfolio of products including electric bikes, trikes, scooters, and cruisers. For more information, visit lastmile-holdings.com.

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Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to: Last Mile Holdings and Gotcha's business and prospects and the Company's objectives, goals or future plans, including the planned deployment of its mobility units; and the business, operations, expected future costs and revenues for and management of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the ability of Company to meet its deployment targets, access to sufficient mobility units, usage of mobility units, meeting the requirements of the permits granted to Company including insurance, general business, economic and social uncertainties including the impact of COVID-19; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other discussed in this news release. Accordingly, the forward-looking statements discussed in this release, may not occur and could differ materially as a result of these known and unknown risk factors and uncertainties affecting the companies. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

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SOURCE Last Mile Holdings Ltd.

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