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VANCOUVER, BC, Aug. 19, 2020 /CNW/ - Last Mile Holdings Ltd.
("MILE" or the "Company") (TSXV: MILE)
(OTC: AZNVF), a leading micro-mobility company with
the broadest product suite in the industry, today announced the
closing of the first tranche ("First Tranche") of its previously
announced private placement of up to $7,000,000. To meet increased demand for the
Offering (the "Offering"), the Company is increasing the Offering
by an additional 10,818,380 Units at $0.075 per unit, bringing the total potential
gross proceeds to $7,811,378, subject
to TSX Venture Exchange approval.
The First Tranche consisted of a total of 33,228,334 units (the
"Units") at a price of $0.075 per
Unit for gross proceeds raised of $2,492,125. Each unit consists of one
limited voting share and one share purchase warrant, with each
warrant exercisable for a period of two years at $0.11 per share, subject to acceleration at the
option of the Company if closing price of the limited voting shares
of the Company is at or above C$0.20
per share for ten consecutive trading days. In connection
with the First Tranche, the Company paid $92,163.76 and 1,228,850 broker warrants to
certain finders. The broker warrants are exercisable for a period
of two years at $0.075 per
share. All shares and warrants issued are subject to a
four-month hold period, expiring December
20, 2020.
Insiders of the Company, including MILE chairman and significant
shareholder Louis Lucido are
participating for $1,650,000 to be
included in the second tranche.
The net proceeds from the Offering will be used for general
working capital purposes as well as to purchase approximately 4,000
new e-bikes and scooters, which will be deployed to meet
contractual agreements with 10 municipalities and universities for
shared mobility systems.
"The successful close of this offering will allow us to continue
in our clearly-defined path for growth and future EBITDA
profitability," said MILE CEO Max
Smith. "We are looking forward to closing our second tranche
shortly and moving full speed ahead to execute our strategy of
long-term contracts with city and university partners."
The final closing of the Offering of up to an additional of
$5,319,253 million (the "Final
Tranche") is anticipated to be no later than August 24, 2020. Closing of the Final Tranche is
subject to certain conditions typical for a transaction of this
nature and the receipt of all necessary regulatory approvals,
including the approval of the Exchange.
For more information on Last Mile Holdings, visit
lastmile-holdings.com.
About Last Mile Holdings
Last Mile Holdings (TSXV:
MILE), formerly OjO Electric, is one of the largest micro-mobility
companies in the U.S., offering the broadest product suite in the
industry. Last Mile has 30 university and 50 municipal
contracted shared mobility systems under the OjO and Gotcha
brands. The acquisition of Gotcha in the first quarter of 2020
provides an expansive growth pipeline and a portfolio of products
including electric bikes, trikes, scooters, and cruisers. For more
information, visit lastmile-holdings.com.
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Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities legislation that are not
historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to: Last Mile Holdings and
Gotcha's business and prospects and the Company's objectives, goals
or future plans, including the planned deployment of its mobility
units; and the business, operations, expected future costs and
revenues for and management of the Company. Forward-looking
statements are necessarily based on a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties and other factors which may cause
actual results and future events to differ materially from those
expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: the ability of Company to
meet its deployment targets, access to sufficient mobility units,
usage of mobility units, meeting the requirements of the permits
granted to Company including insurance, general business, economic
and social uncertainties including the impact of COVID-19;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; delay or
failure to receive board, shareholder or regulatory approvals;
those additional risks set out in the Company's public documents
filed on SEDAR at www.sedar.com; and other discussed in this news
release. Accordingly, the forward-looking statements discussed in
this release, may not occur and could differ materially as a result
of these known and unknown risk factors and uncertainties affecting
the companies. Although the Company believes that the assumptions
and factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Reader Advisory
Neither the TSX-V nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX-V) accepts responsibility of the adequacy or
accuracy of this release.
SOURCE Last Mile Holdings Ltd.