Drone Delivery Canada (DDC) recently announced the completion of a bought deal offering, only to declare the next day that the deal had nearly doubled in value.
It announced it had entered into an agreement with Echelon Wealth Partners and Canaccord Genuity as co-lead underwriters, on behalf of a syndicate of underwriters.
The underwriters initially agreed to purchase, on a bought deal basis, 7,143,000 units of the company for gross proceeds of approximately $5 million (£3.9 million).
Only the next day, however, DDC provided an update, in which it revealed that the deal had been amended, meaning an increase from approximately $5 million to $8.05 million (£6.3 million).
Furthermore, it includes an over-allotment option which, if fully exercised, increases the size of the bought deal to $9.25 million (£7.25 million).
The offering is expected to close on or around 5 August, 2020.
The company intends to use the net proceeds from the offering to further develop its international prospects, to proportionally scale staffing as may be required, for the development of new projects, and for working capital and general corporate purposes.