Drone Delivery Canada Corp. Announces Closing of Bought-Deal Offering, Including the Full Exercise of Over-Allotment Option, for Aggregate Gross Proceeds of $9,257,500

Toronto, Ontario–(Newsfile Corp. – August 5, 2020) – Further to its press releases dated July 13, 2020 and July 14, 2020, Drone Delivery Canada Corp. (TSXV: FLT) (OTC: TAKOF) (the “Company“) is pleased to announce today that it has closed its previously announced bought-deal prospectus offering (the “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 (the “Issue Price“). Each Unit is comprised of one common share in the capital of the Company (each a “Share“) and one-half of one Share purchase warrant of the Company (each whole such warrant a “Warrant“). 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 Inc. 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 (the “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.

The securities issued pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Drone Delivery Canada Corp.

Drone Delivery Canada Corp. (TSXV: FLT) (OTC: TAKOF) (FSE: ABB) is a drone technology company focused on the design, development, and implementation of its proprietary logistics software platform, using drones. The Company’s platform will be used as a Software as a Service (SaaS) model for government and corporate organizations globally.

Drone Delivery Canada Corp. is a publicly listed company trading on the TSX.V Exchange under the symbol FLT, on the U.S. OTCQX market under the symbol TAKOF, and on the Frankfurt exchange under the symbol A2AMGZ or ABB.F.

For further information:

Investor Relations: Mr. Michael Zahra, Chief Executive Officer, and Mr. Bill Mitoulas, Telephone: (416) 479-9547, Email: billm@dronedeliverycanada.com.

Neither the 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.

Notice Regarding Forward Looking Information

Certain information set forth in this news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, including the use of proceeds of the Offering. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, and dependence upon regulatory approvals (both in Canada and internationally). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking information. The parties undertake no obligation to update forward-looking information except as otherwise may be required by applicable securities law.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/61103