ParcelPal Closes $210,000 USD Bridge Financing via Non-Brokered Private Placement

VANCOUVER, British Columbia, June 30, 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 US$210,000 to an arm's length investor (the “Note”). The terms of the Note include the following:

• the sum of US$200,000 (the “Consideration”) was advanced to the Company on closing, and $10,000 (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;

• the Note bears interest at a one-time guaranteed rate of 5% on the principal sum of each funded tranche, and has a Maturity Date of seven and one half months from the effective date of the 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$0.08 / CN $0.10 per share (“Fixed Conversion Price”); and

• We estimate the net proceeds from this financing, after deducting any fees, expenses and issue discounts payable by us, are intended to be used for certain continued 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, plus the 5% OID. The Company may prepay any outstanding portion of the Note in cash prior to the Maturity Date;

• The Company granted a right of first refusal to the Noteholder during the term of the Note to invest, at similar or better terms to the Company, in an amount equal to or greater than any future capital or equity or debt financing by the Company. During the term of the Note, if the Company issues a convertible debt security with more favorable to such other holder than contained in this Note, and if such terms were not similarly provided to the Noteholder, then at the Noteholder's option the revised terms shall apply to the terms of the Note; and

• If the Note is not repaid or fully converted on or before the Maturity Date, then the Noteholder has the option to convert the remaining outstanding Principal Amount under the Note into common shares at the Variable Conversion Price equal to the lower of: (a) US$0.08 per share or (b) 75% of the two lowest volume weighted average prices of the Company’s common shares during the 15 consecutive trading days prior to the date on which Noteholder elects to convert all or part of the Note; provided, however, that any such discount to the Fixed Conversion Price is subject to compliance with applicable Canadian securities laws and the policies and rules of the Canadian Securities Exchange or such other stock exchange on which the securities of the Company are principally traded.

The Company did not pay any finder’s fees or issue any warrants in connection with the Offering.