Canada : Siyata Mobile Announces Increase of CDN$1 Million to Brokered Private Placement resulting in up to CDN$4 Million in Unsecured Convertible Debentures.
The Company will grant an option to require the Company to sell, at the sole discretion of the Lead Agent, up to an additional 600 Convertible Debentures at the Issue Price (the Agents Option) (up from the 450 Convertible Debentures previously announced on December 13, 2017) and otherwise on the same terms and conditions, exercisable in whole or in part upon providing written notice to the Company not less than forty-eight (48) hours prior to the closing date for the Offering (the Closing Date).
Each Convertible Debenture will be convertible into 1,667 common shares in the capital of the Company (Common Shares, and each a Common Share) representing approximately CDN$0.60 (the Conversion Price) per Common Share, subject to adjustment in certain events.
Each Convertible Debenture will bear interest at a rate of 10.5% per annum from the date of issue, payable in cash quarterly in arrears. Any unpaid interest payments will accrue and be added to the principal amount of the Convertible Debenture.
The Convertible Debentures will mature thirty (30) months (the Maturity Date) after the date of issuance and are convertible into Common Shares at the Conversion Price at the option of the holder at any time prior to the close of business on the earlier of: (i) the last business day immediately preceding the Maturity Date, and (ii) the date fixed for redemption in the event of a change of control.
On the Closing Date, each purchaser will receive one (1) non-transferrable share purchase warrant (each, a Warrant) for each CDN$1.00 principal amount of Convertible Debentures purchased by such purchaser. Each Warrant will entitle the holder to acquire one further Common Share (each, a Warrant Share) at an exercise price of CDN$0.70 per Warrant Share. The Warrants will expire on the two year anniversary of the Closing Date.
The Lead Agent has the right to assemble a syndicate in accordance with standard industry practice (including the Lead Agent, the Syndicate) and in consideration of the services to be provided by the Syndicate, the Company shall pay a commission of 7% of the gross proceeds of the Offering, payable in Common Shares.
The Offering remains subject to the approval of the TSX Venture Exchange, as well as customary legal and business due diligence by the Syndicate. The securities issued pursuant to the Offering will be subject to a statutory hold period of four (4) months and one (1) day and the net proceeds from the Offering will be used for general working capital. Net proceeds of the Offering will be used to fund general working capital and repay and close the operating credit margin facility of Signifi Mobile Inc. (a wholly owned subsidiary of the Company) with the National Bank of Canada and discharge the security associated therewith.
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|Date:||Dec 14, 2017|
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