Deveron UAS Corp. (CSE: DVR) (“Deveron” or the “Company”), is pleased to announce that it has completed the first tranche (the “First Tranche”) of its previously announced brokered private placement (the “Offering”) led by First Republic Capital Corporation (the “Agent”). Garfinkle Biderman LLP acted as legal advisor to the Agent. Further, the Agent has elected to exercise the over-allotment option to sell up to an additional 5,000,000 Units (as defined below) of the Company for aggregate proceeds of $1,750,000 (the “Over-Allotment Option”). Part of the Over-Allotment Option was closed in the First Tranche and it is expected that the Company will close a second tranche of up to 2,571,428 Units for gross proceed of up to $900,000 on or before May 19, 2017.
Pursuant to the terms of an agency agreement (the “Agency Agreement”) between the Company and the Agent dated April 21, 2017 the Company completed the First Tranche of 3,739,288 units (each, a “Unit”) at a price of $0.35 per Unit, for aggregate gross proceeds of $1,308,750.80. Each Unit consists of one common share in the capital of the Company (a “Common Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share of the Company (a “Warrant Share”) at a price of C$0.50 per Warrant Share for a period of 18 months after the closing of this First Tranche.
As consideration for the services provided by the Agent and other agents in connection with the closing of the First Tranche, the Agent and certain other agents received a cash commission equal to in the aggregate $117,787.57 and an aggregate of 336,535 compensation warrants (the “Compensation Warrants”), each Compensation Warrant exercisable at any time until eighteen (18) months from the date of closing of the First Tranche into one Common Share at an exercise price of $0.35. The securities issued in connection with the First Tranche are subject to a hold period until four months and a day from the date of closing of the First Tranche.
Net proceeds will be used by the Company to further the business of the Company and for general working capital purposes.
Source: Deveron USA