VANCOUVER, April 12, 2018 /CNW/ - PenderFund Capital Management Ltd. ("PenderFund"), on behalf of the investment funds managed by it, acquired 2,000 convertible debentures (the "Debentures") of Siyata Mobile Inc. (the "Issuer"), of 1001 Lenoir Street, Montreal, QC H4C 2Z6 at a price of $1,000 per Debenture, for a total consideration of $2,000,000, with each Debenture being convertible into 1,667 common shares (the "Shares") or approximately 3,333,334 Shares, pursuant to a debenture offering (the "Debenture Offering"). As part of the Debenture Offering, PenderFund also received 2,000,000 share purchase warrants (the "Debenture Warrants"). Each Debenture Warrant is exercisable into one Share of the Issuer at a price of $0.70 per Share.
The conversion of the Debentures and the exercise of the Debenture Warrants in full would represent approximately 5.51% of the issued and outstanding share capital of the Issuer, assuming no other Shares are issued.
Immediately prior to the Debenture Offering, PenderFund, on behalf of the investment funds managed by it, held an aggregate of 4,320,200 Shares and 1,785,714 common share purchase warrants exercisable into 1,785,714 Shares at an exercise price of $0.50 (the "Private Placement Warrants" and, together with the Debenture Warrants, the "Warrants"). Accordingly, assuming exercise of the Private Placement Warrants, immediately prior to the completion of the Debenture Offering, PenderFund would have held 6,105,914 Shares, or 6.55% of the Issuer's outstanding common shares on a partially diluted basis.
On March 23, 2018, PenderFund disposed of 92,200 Shares bringing its holdings, as of the date of this news release, to 4,228,000 Shares, 2,000 Debentures (exercisable into 3,333,334 Shares) and 3,785,714 Warrants. If none of the Debentures or Warrants were exercised, PenderFund would hold 4,228,000 Shares, or 4.62% of the Issuer's outstanding common shares. If all of the Debentures and the Warrants were exercised by PenderFund, as of the date of this news release, it would hold 11,347,048 Shares, or 11.51% of the Issuer's outstanding common shares on a partially diluted basis.
PenderFund, on behalf of the investment funds managed by it, acquired ownership of, or control or direction over, the Debentures and Debenture Warrants and disposed of the 92,200 Shares for investment purposes. PenderFund, on behalf of the investment funds managed by it, may decide to acquire or dispose of ownership of, or control or direction over, additional securities of the Issuer for investment purposes as determined to be in the best interests of the investment funds at any time in the future.
A copy of the early warning report filed by PenderFund in connection with the acquisition of the Debentures and Warrants is available on the SEDAR website at www.sedar.com or by contacting Gina Jones, Chief Operating Officer, 604 688 1511.
About PenderFund Capital Management Ltd.
Pender is an independent, employee-owned, value-based investment firm located in Vancouver. Our goal is to create value for our investors by generating superior risk-adjusted returns, while protecting capital and minimizing downside risk. Pender was founded in 2003 and is the Manager of a suite of niche investment funds.
Please read important disclosures at www.penderfund.com/disclaimer.
SOURCE PenderFund Capital Management Ltd.
For further information: Gina Jones, Chief Operating Officer, 604 688 1511