Siyata Mobile Closes $1.4M Private Placement
MONTREAL, July 28, 2020 (GLOBE NEWSWIRE) -- Siyata Mobile Inc. (TSX-V:SIM / OTCQX:SYATF/ FRA: WK3D) is pleased to announce that it has completed a non-brokered private placement of 14,434,200 units (the “Units”) of the Company at a price of $0.10 per Unit for aggregate gross proceeds of $1,443,420 (the “Offering”). Each Unit consists of one common share of the Company (the “Shares”) and one-half of a common share purchase warrant, entitling the holder to acquire an additional common share of the Company at a price of $0.18 for a period of two years from the date of issuance (the “Warrants”).
In connection with the Offering, the Company paid a cash commission totaling $1,750 and issued 17,500 finder’s warrants. Each finder’s warrant entitles the holder to acquire one Share at a price of $0.18 per Share for a period of two years from issuance.
The Company intends to use the net proceeds of the Offering for general corporate purposes including to bolster working capital to enable an acceleration of growth in the vast United-States market, where Siyata enjoys its highest margins.
The Offering included a subscription from Marc Seelenfreund, CEO and director of the Company, for an aggregate of 360,000 Units. The issuance of Units to directors and officers of the Company, pursuant to the Offering, are considered related party transactions within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied upon exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of insider participation, as neither the fair market value of, nor the fair marketvalue of the consideration for, the Offering, insofar as it involves a related party of the Company, exceed twenty-five percent of the market capitalization of the Company.
All securities issued in connection with the Offering are subject to a four-month-and-one-day statutory hold period from the date of issuance.
Marc Seelenfreund, CEO of Siyata, states, “The closing of this financing provides the growth capital necessary to further support our aggressive sales expansion in the US market. We believe, between our market-leading product offering and our partnerships with the largest cellular wireless carriers in North America, that 2020 will represent a major inflection point in terms of growth and profitability for the Company.”
Siyata Mobile Inc. is a B2B global vendor of next generation Push-To-Talk over Cellular (PTT) devices and cellular booster systems. Its portfolio of in-vehicle and rugged smartphones enable first responders and enterprise workers to instantly communicate, over a nationwide cellular network of choice, to improve communication, increase situational awareness and save lives.
Its portfolio of enterprise cellular booster systems enables first responders and enterprise workers to amplify its cellular signal in remote areas, inside structural buildings where signals are weak and within vehicles for maximum cellular signal strength possible.
On Behalf of the Board of Directors of:
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. All statements within, other than statements of historical fact, are to be considered forward looking. 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. 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.