ParcelPal Closes $367,500 USD Bridge Financing via Non-Brokered Private Placement

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VANCOUVER, British Columbia, April 14, 2020 (GLOBE NEWSWIRE) -- ParcelPal Technology Inc. (“ParcelPal” or the “Company”), (PKG:CSE) (FSE:PT0) (OTC:PTNYF) is pleased to announce that it has completed a non-brokered private placement (the “Offering”) pursuant to which it issued an unsecured convertible note with a face value of up to US$367,500 to an arm's length investor (the “Note”).  The terms of the Note include the following:

• the sum of US$250,000 (the “Initial Consideration”) was advanced to the Company on closing, and $12,500 (the “Initial Original Issue Discount”) was retained by the Noteholder through an original issue discount (the “OID”) for expenses related to the Offering, and the issuance of 300,000 common shares as investment incentive shares;
  
  
• Additional Tranche Consideration, up to US$100,000 upon request by the Company, shall be advanced by the Noteholder in such amounts and at such date as the parties mutually agree, plus the prorated 5% OID to the Company on such amounts, and up to an additional 300,000 investment incentive shares assuming the maximum investment of not less than US$100,000 to the company;
  
  
• the Note bears interest at a one-time guaranteed rate of 10% on the principal sum of each funded tranche, and has a Maturity Date of seven and one half months from the effective date of each tranche funding (the “Maturity Date”);
  
  
• the principal amount of the Notes shall be convertible into common shares of the Company prior to the Maturity Date, at the option of the Noteholder, at a fixed conversion price of US$0.06 per Share (“Fixed Conversion Price”); and
  
  
• We estimate the net proceeds from this financing, including any additional tranche consideration, after deducting any fees, expenses and issue discounts payable by us, are intended to be used for certain scaling operations of the Company, on improvement and development of its technology and software, to elevate the Company’s platform, and for general corporate and working capital purposes;
  
  
• The Principal Sum due to Noteholder is prorated based on the Consideration actually paid by Noteholder, plus the 5% OID, such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of the Note. The Company may prepay any outstanding portion of the Note in cash prior to the Maturity Date;