Vancouver, British Columbia--(Newsfile Corp. - June 15, 2018) - Global UAV Technologies Ltd. (CSE: UAV) (OTC: YRLLF) (FSE: YAB2) (the "Company" or "Global UAV"), wishes to provide a further update on the non-brokered private placement of units (the "Units") of the Company for gross proceeds of up to C$1,500,000 (the "Offering") previously disclosed in its news releases of June 5, 2018 and June 13, 2018.
In connection with the Offering, Michael Burns, the Chief Executive Officer and a director of the Company, has completed a further sale (the "Sale") on June 14, 2018 of an aggregate 2,000,000 common shares of the Company at C$0.09 per share in pre-arranged trades through the facilities of the Canadian Securities Exchange. The proceeds from the Sale will be used to subscribe for a corresponding number of Units under the Offering. Michael Burns had previously completed the sale of an aggregate 3,325,000 common shares on June 12, 2018 in connection with the Offering, as disclosed in the Company's June 13, 2018 news release.
As noted in the prior news releases and in connection with the Sale, an insider of the Company will be subscribing for greater than 25% of the Offering. The issuance of securities to an insider pursuant to the Offering is considered to be a related party transaction subject to Multilateral Instrument 61‑101 — Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering is exempt from the need to obtain minority shareholder approval and a formal valuation as required by MI 61-101 as the fair market value of any Units to insiders or the consideration paid by insiders of the Company will not exceed 25% of the Company's market capitalization.
Following completion of the Sale, Michael Burns' ownership of Common Shares has been reduced from 3,706,648 to 1,706,648 to and his percentage ownership of securities of the Company decreased from approximately 6.0% to 4.2% as a result of the Sale, calculated on a partially diluted basis.
A material change report in connection with the Offering will be filed less than 21 days before the closing of the Offering. The Company believes this shorter period is reasonable and necessary in the circumstances as the Company wishes to complete the Offering in a timely manner.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Global UAV:
Global UAV's goal is to be the leading solution provider in the Unmanned Aerial Vehicle (UAV) sector for complex operations and advanced remote sensing requirements by utilizing its diverse group of companies.
On behalf of the Board of Directors,
CEO & Director
For additional information please contact:
Global UAV Technologies Ltd.
Email: [email protected]
Statements in this press release, other than purely historical information, including statements relating to the Offering, the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in public markets, service industries, manufacturing and the UAV Sector. As a result, actual results may vary materially from those described in the forward-looking statements.