Siyata Mobile $SIM Announces Brokered Private Placement of $3MM

Siyata Mobile 1(TSX.V:SIM) (OTCQX:SYATF)

Siyata Mobile Inc. is pleased to announce it has entered into an agreement with PI Financial Corp. to act as lead agent in connection with a brokered private placement financing raising up to CDN$3,000,000.00 and, if exercised, up to an additional CDN$450,000.00 pursuant to the Agent’s Option through the issuance of unsecured convertible debentures at a price of CDN$1,000.00 per Convertible Debenture.

The Company will grant an option to require the Company to sell, at the sole discretion of the Lead Agent, up to an additional 450 Convertible Debentures at the Issue Price and otherwise on the same terms and conditions, exercisable in whole or in part upon providing written notice to the Company not less than forty-eight hours prior to the closing date for the Offering.

Each Convertible Debenture will be convertible into 1,667 common shares in the capital of the Company representing approximately CDN$0.60 per Common Share, subject to adjustment in certain events.

Each Convertible Debenture will bear interest at a rate of 10.5% per annum from the date of issue, payable in cash quarterly in arrears. Any unpaid interest payments will accrue and be added to the principal amount of the Convertible Debenture.

The Convertible Debentures will mature thirty months after the date of issuance and are convertible into Common Shares at the Conversion Price at the option of the holder at any time prior to the close of business on the earlier of: the last business day immediately preceding the Maturity Date, and the date fixed for redemption in the event of a change of control.

On the Closing Date, each purchaser will receive one non-transferrable share purchase warrant for each CDN$1.00 principal amount of Convertible Debentures purchased by such purchaser. Each Warrant will entitle the holder to acquire one further Common Share at an exercise price of CDN$0.70 per Warrant Share.  The Warrants will expire on the two year anniversary of the Closing Date.

The Lead Agent has the right to assemble a syndicate in accordance with standard industry practice and in consideration of the services to be provided by the Syndicate, the Company shall pay a commission of 7% of the gross proceeds of the Offering, payable in Common Shares.

The Offering remains subject to the approval of the TSX Venture Exchange, as well as customary legal and business due diligence by the Syndicate. The securities issued pursuant to the Offering will be subject to a statutory hold period of four months and one day and the net proceeds from the Offering will be used for general working capital.   Net proceeds of the Offering will be used to fund general working capital and repay and close the operating credit margin facility of Signifi Mobile Inc. with the National Bank of Canada and discharge the security associated therewith.

“We are pleased to have this financing in place as it will allow us to achieve our double-digit growth targets and North American device launches next year. We have a very exciting 2018 ahead of us and this is a strong vote of confidence in our activities from the financial markets.”

-Marc Seelenfreund, CEO and Chairman of Siyata Mobile