Siyata Mobile Completes $5.1M Brokered Financing
Montréal, QC – Siyata Mobile Inc. (TSX-V:SIM | OTC PINK:SIMFF) (the “Company” or “Siyata”)is pleased to announce that it has closed a brokered private placement (the “Offering”) for gross proceeds of CAD$5.134 million, through a syndicate of investment dealers led by Paradigm Capital Inc. (the “Lead Agent”) and including PI Financial Corp. and Haywood Securities Inc. (together with the Lead Agent, the “Agents”), previously announced on February 27, 2017.
As a result of the financing, the Company has CAD$9M in available working capital, positioning the Company to be well-capitalized as it expands its sales and reach into North America.
The Company issued 12,835,000 units pursuant to the Offering. Each unit is compromised of one common share and one common share purchase warrant. Each warrant is exercisable to acquire one common share of the Company at an exercise price of CAD$0.50 per share until March 16, 2019, subject to customary anti-dilution adjustments. The Company has the option to accelerate the expiry of the warrants, upon providing notice to warrant holders and issuing a press release, if its common shares close at CAD$0.70 or greater on the TSXV for 10 consecutive trading days. The securities issued in connection with the Offering are subject to a customary four month hold period expiring July 17, 2017.
In consideration of the services rendered by the Agents in connection with the Offering, the Company paid the Agents a cash fee equal to 8.0% of the aggregate gross proceeds of the Offering and issued to the Agents and selling group members broker warrants equal to 8% of the number of the Units issued pursuant to the Offering (the “Broker Warrants”). Each Broker Warrant entitles the holder thereof to acquire one common share of the Company at $0.40 per common share for a period for 24 months following the closing date. As additional consideration, certain of the Agents were issued an aggregate of 100,000 units of the Corporation on the closing date, having terms identical to the units issued to subscribers.
The net proceeds of the Offering will be used by the Company to fund its future growth in the North American market and for working capital purposes.
Siyata Mobile Inc. is a leading global developer and provider of innovative cellular communication systems under the Uniden® Cellular brand. Siyata’s “Connected-Vehicle” devices and accessories are specifically designed for professional fleets including trucks, vans, buses, emergency service vehicles, government cars and more. Siyata aims to provide greater mobile connectivity for professional drivers and to facilitate replacement of the aging in-vehicle, multi-device status quo with a single device that incorporates voice, push-to-talk, data, and fleet management solutions.
Siyata also markets and sells Uniden® cellular signal boosters and accessories as well as rugged mobile phones for both the consumer and enterprise markets. Siyata’s customers include cellular operators, commercial vehicle technology distributors, and fleets of all sizes in Canada, the US, Europe, Australia, and the Middle East.
On Behalf of the Board of Directors of:
SIYATA MOBILE INC.
Glenn Kennedy, VP Sales
Siyata Mobile Inc.
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 includes forward-looking statements that are subject to risks and uncertainties. All statements, other than statements of historical fact, are to be considered forward looking and include statements about the Company’s future growth and growth plans and it use of the net Offering proceeds. Although the Company believes the expectations expressed in such forward-looking 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 in addition to those risk factors set forth in the Company’s public record filed on www.sedar.com. There can be no assurances that such forward-looking 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 applicable securities laws.]
This news release does not constitute an offer to sell or a solicitation of an offer to sell 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 law 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 law or an exemption from such registration is available.