Siyata Mobile Inc. (the "
Company" or
"
Siyata") (TSX-V:SIM) (OTCQX:SYATF) is pleased to
announce it has closed its previously announced brokered private
placement (the “
Offering”) with co-lead agents, PI
Financial Corp. and Canaccord Genuity Corp. (collectively, the
“
Co-Lead Agents”), and with Paradigm Capital Inc.
and Beacon Securities Limited (together with the Co-Lead Agents,
the “
Agents”). Pursuant to the Offering the
Company has issued $7,866,000 in principal amount of unsecured
convertible debentures (the “
Convertible
Debentures”).
The Convertible Debentures included new
subscriptions for $4,547,000 in principal amount, with the balance
representing the rollover of certain of the Company’s previously
issued debentures due on June 28, 2020. The Convertible Debentures
were issued at a price of $950 per $1,000 in principal amount.
Each $1,000 in principal amount of Convertible
Debenture is convertible, at the option of the holder, into 2,222
common shares in the capital of the Company (the “Common
Shares” and each, a “Common Share”) at a
price of CDN$0.45 (the “Conversion Price”) per
Common Share, subject to standard adjustment in certain events.
Each Convertible Debenture will bear interest at
a rate of 12.0% per annum from the date of issue, payable in cash
quarterly in arrears. The Convertible Debentures will mature on
December 23, 2021 (the “Maturity Date”) and are
redeemable by the Company at 101% of the face value at any time
after December 23, 2020.
On the closing each purchaser also received one
(1) common share purchase warrant (each, a
“Warrant”) for each CDN$1.00 principal amount of
the Convertible Debentures acquired. Each Warrant entitles the
holder to acquire one Common Share (each, a “Warrant
Share”) at an exercise price of CDN$0.45 per Warrant Share
on or before December 23, 2022.
In consideration of the services to be provided
by the Agents, the Company paid a cash commission of $302,375.50
and granted the Agents an aggregate of 728,616 common share
purchase warrants (each, a “Broker Warrant”). Each
Broker Warrant entitles the holder to acquire an additional Common
Share (each, a “Broker Warrant Share”) at a price
of CDN$0.415 per Broker Warrant Share on or before December 23,
2021.
The Company also paid an advisory fee to the
Co-Lead Agents consisting of an aggregate of 481,928 common shares
(the “Advisory Fee”) by virtue of having achieved
at least a 50% participation from the pre-existing holders of the
debentures due on June 28, 2020.
The securities issued pursuant to the Offering,
including the Broker Warrants and the Common Shares issued in
connection with the Advisory Fee, are subject to a statutory hold
period, expiring on April 24, 2020. Net proceeds of the Offering
will be used to: (i) pay down the Company’s obligations under any
remaining debentures due on June 28, 2020; (ii) fund general
working capital; and (iii) ramp up the Company’s North American
operations.
Marc Seelenfreund, CEO and Chairman of Siyata,
commented, “We are pleased to complete this financing as it
positions us to effectively deal with our June 2020 debenture
principal repayment and secures additional working capital to help
achieve our aggressive growth targets in 2020. Now that we have
launched the UV350 at the leading US and Canadian cellular
carriers, we have a very exciting 2020 ahead of us.”
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”) or any state securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About Siyata
A TSX Venture Top 50 Company, Siyata Mobile Inc.
is a leading global developer and provider of cellular
communications systems for enterprise customers, specializing in
connected vehicle products for professional fleets, marketed under
the Uniden® Cellular brand. Siyata has been a pioneer in the
industry, launching the world’s first LTE all-in-one fleet
communications device in 2017. Incorporating voice, push-to-talk
over cellular, data, and fleet management solutions into a single
device, the company aims to become the connected vehicle
communications device of choice for commercial vehicles and fleets
around the world.
Siyata also offers rugged phones for industrial
users and signal boosters for homes, buildings, and fleets with
poor cell coverage. Siyata’s customers include cellular operators,
commercial vehicle technology distributors, and fleets of all sizes
in Canada, the U.S., Europe, Australia, and the Middle East.
Visit www.siyatamobile.com and
http://www.unidencellular.com/ to learn more. On Behalf of
the Board of Directors of:
SIYATA MOBILE INC.
Marc Seelenfreund CEO and Chairman
Investor Relations: Arlen Hansen
Kin Communications 1-866-684-6730
SIM@kincommunications.com
Sales Department: Glenn Kennedy,
VP Sales Siyata Mobile Inc. 416-892-1823
glenn_kennedy@siyatamobile.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release may include forward-looking
statements that are subject to risks and uncertainties. Such
forward-looking statements include, but are not limited to, matters
regarding the ability of the Corporation to pay interest payable
pursuant to the Convertible Debentures and to achieve its growth
targets; the use of the net proceeds from the Offering; and the
confidence of the financial markets in the Corporation’s
activities. All statements within, other than statements of
historical fact, are to be considered forward looking. Although the
Company believes the expectations expressed in such forwardlooking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market
prices, continued availability of capital and financing, and
general economic, market or business conditions. There can be no
assurances that such statements will prove accurate and, therefore,
readers are advised to rely on their own evaluation of such
uncertainties. We do not assume any obligation to update any
forward-looking statements except as required under the applicable
laws.
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