Drone Delivery Canada Corp Announces $7 Million Bought Deal Financing

TORONTO, March 6, 2019 /CNW/ – Drone Delivery Canada Corp. (TSX.V:FLT – OTCQB: TAKOF) (“Drone Delivery” or the “Corporation”) announced today that it has entered into an agreement with GMP Securities L.P. (the “Underwriter”), pursuant to which the Underwriter has agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, 6,000,000 units (the “Units”) of the Corporation at a price of $1.20 per Unit (the “Offering Price”) for aggregate gross proceeds to Drone Delivery of $7,200,000 (the “Offering”).  Each unit shall consist of one common share and one half common share purchase warrant (a “Warrant”), with each Warrant entitling the holder to purchase one common share at a price of $1.50 until 24 months after the Closing Date. If the volume weighted average price of the Common Shares on the TSXV 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 Company has agreed to grant the Underwriter an over-allotment option to purchase up to an additional 900,000 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering.  If this option is exercised in full, an additional $1,080,000 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $8,280,000.

The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec). The Company intends to use the net proceeds from the Offering to further build out the Company’s international drone delivery logistics platform, including the recent agreement with Toyota Tsusho Canada Inc., scaling the management and the sales team, providing additional resources for the commercialization roll out, for new projects, and for working capital and general corporate purposes.  The Offering is expected to close on March 25, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.