- The stock price of Siyata Mobile Inc (NASDAQ: SYTA) increased by 82.7% today. This is why it happened.
The stock price of Siyata Mobile Inc (NASDAQ: SYTA) – a global vendor of Push-to-Talk over Cellular (PoC) devices and cellular signal booster systems – increased by 82.7% today. Investors are responding positively to Siyata Mobile announcing it has signed a funding agreement for gross proceeds of $6 million with Lind Global Partners II, LP, an investment fund managed by The Lind Partners, a New York-based institutional fund manager. The proceeds are expected within 10 days of the execution of the agreement, subject to customary closing conditions, and will be used to repay and terminate existing convertible notes.
The investment is in the form of a US$7,200,000 convertible note with a 24-month maturity, 0% annual interest rate, and is convertible into the company’s common shares at a fixed conversion price of US$10.00. And commencing 180 days after funding, the company is required to make principal payments in 18 equal monthly installments.
At the discretion of Siyata Mobile, repayments can be made in cash or registered common shares. And Siyata Mobile will have the right to buy-back the outstanding note amounts at any time with no penalty. Should Siyata Mobile exercise this right, Lind will have the option to convert up to 25% of the note. Plus the note ranks senior to other company debt, excluding certain debt facilities, and is secured over company assets.
Lind will also receive 2,142,857 warrants exercisable for 60-months at US$4.00 per share. Siyata Mobile is obligated to file a registration statement covering the shares of common stock underlying the Note and warrants within forty-five days of closing.
“Staying connected in emergency situations is more critical now than ever and we are committed to being a leading provider of innovative push-to-talk and connectivity solutions to our first responder heroes around the world. We are thrilled to have the support of The Lind Partners as a significant investor in Siyata and believe this funding will give us the flexibility we need to reach our goal of achieving profitability in the coming quarters.”
— Marc Seelenfreund, CEO of Siyata
“We are pleased to provide this investment to repay Siyata’s debt, especially when the company is at such an exciting inflection point. The company has a promising product portfolio in a multi-billion-dollar emerging market and has partnered with major U.S. and international cellular carriers as distribution partners. We are hopeful that this will lead to strong growth for the company going forward.”
— Phillip Valliere, Managing Director at The Lind Partners
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