2020-07-29

Siyata Mobile closes $1.4M private placement

Source: Siyata Mobile

Siyata Mobile Inc. said it is pleased to announce that the company 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 market value 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.