Siyata Mobile Closes Non-Brokered Private Placement of CDN$1,330,000 in Unsecured Convertible Debentures

Q1 2020 Financials to be Filed Tuesday June 30th, 2020 followed with Investor Call July 2nd, 2020

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MONTRÉAL, June 26, 2020 (GLOBE NEWSWIRE) -- Siyata Mobile Inc. (TSX-V:SIM / OTCQX:SYATF/ FRA: WK3D) is pleased to announce it has completed its previously announced non-brokered private placement financing (the “Offering”) pursuant to which Accel Telecom Ltd. (“Accel”) subscribed for 1,330 senior unsecured convertible debentures (the “Convertible Debentures”) at an issue price of CDN$1,000 per Convertible Debenture for aggregate gross proceeds of CDN$1,330,000.

Each Convertible Debenture is convertible, at the option of the holder, into 3,333 common shares in the capital of the Company (the “Common Shares” and each, a “Common Share”) at a price of CDN$0.30 (the “Conversion Price”) per Common Share, subject to adjustment in certain events.

Each Convertible Debenture bears interest at a rate of 10.0% 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 on June 26, 2021 (the “Maturity Date”) and are redeemable at 101% of the face value at any time after the closing date.

Accel received 1,330,000 non-transferrable common share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (each, a “Warrant Share”) at an exercise price of CDN$0.30 per Warrant Share until June 26, 2021.

Due to Accel’s relationship as an insider to the Company, the Offering is considered a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Pursuant to Section 5.5(a) and 5.7(1)(a) of MI 61-101, the Company is exempt from obtaining a formal valuation and minority approval of the Company’s shareholders in respect of the Offering due to the fair market value of the related party’s participation in the Offering being below 25% of the Company’s market capitalization for purposes of MI 61-101.

An existing arm’s-length debenture holder amended the terms of its outstanding convertible debentures in the amount of CDN$250,000 due June 28, 2020 (the “Existing Debentures”) on equivalent terms as the Offering (the “Amendment”).

No finders fees were paid in conjunction with the Offering or Amendment.

The securities issued on conversion of the Convertible Debentures and Warrants are subject to a statutory hold period of four (4) months and one (1) day. Net proceeds of the Offering will be used to fund general working capital and a portion may be used to pay down any Existing Debentures that are not amended pursuant to the Amendment.