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TORONTO, Dec. 1, 2020 /CNW/ – Drone Delivery Canada Corp. (TSXV: FLT^[1]) (OTC: TAKOF) (the “Company” or “DDC“) is pleased to announce that in connection with its previously announced bought deal public offering, the Company and a syndicate of investment dealers co-led by Cormark Securities Inc. and Echelon Wealth Partners Inc. (collectively, the “Underwriters“) have agreed to increase the size of the offering. The Company will now issue 13,640,000 Units (the “Units“) from the treasury of the Company, at a price of $0.88 per Unit for total gross proceeds of approximately $12,003,200 (the “Offering“).

Each Unit will consist of one common share (each a “Common Share“) of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant” and collectively the “Warrants“) of the Company. Each Warrant will entitle the holder thereof to purchase one Common Share at a price equal to $1.20 for a period of 24 months.

In addition, the Company and the Underwriters have also agreed to increase the over-allotment option granted to the Underwriters (the “Over-Allotment Option“) to purchase up to an additional 15% of the Units of the Offering on the same terms exercisable at any time up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any.

The Company intends to use the net proceeds of the Offering for capital expenditures and general corporate purposes.

Closing of the Offering is expected to occur on or about December 22, 2020 and is subject to regulatory approval including that of the TSX Venture Exchange (the “Exchange“).

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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.