Drone Delivery Canada has closed its previously announced bought-deal prospectus offering for aggregate gross proceeds of $9,257,500 which includes the full exercise of the over-allotment option.
Under the offering, the company sold a total of 13,225,000 units at a price of $0.70 per unit.
Each unit is comprised of one common share in the capital of the company and one-half of one share purchase warrant of the company.
Each Warrant entitles the holder to purchase one share at a price of $0.95 until August 5, 2022.
The TSXV has conditionally approved the listing of the warrants, subject to standard listing conditions. The warrants are expected to commence trading on or after August 10, 2020.
The offering was completed by a syndicate of underwriters co-led by Echelon Wealth Partners and Canaccord Genuity Corporation, and including Cormark Securities Inc.
The underwriters were paid a cash commission of $555,450, equal to 6% of the gross proceeds raised, and were issued an aggregate of 793,500 broker warrants, each Broker Warrant entitling the holder to acquire one unit at the Issue Price until August 5, 2022.
The securities were offered by way of a short form prospectus filed in all provinces of Canada, except Quebec.
The company intends to use the net proceeds from the Offering to further develop the Company’s international prospects, to proportionally scale staffing as may be required, for the development of new projects, and for working capital and general corporate purposes.