The Delma Group Inc. Announces Private Placement Offering of Up to 15,000,000 Units

MONTREAL, Dec. 05, 2019 (GLOBE NEWSWIRE) — (CSE: DLMA) The Delma Group Inc. (the “Company” or “Delma”) is pleased to announce that it has commenced a private placement offering of up to 15,000,000 units of the Company at a price of $1.00 per unit (the “Units”) for aggregate gross proceeds to the Company of up to $15M (the “Private Placement”). The Units are to be offered and sold by private placement in Canada to “accredited investors” within the meaning of National Instrument 45-106 and other exempt purchasers in each province of Canada. The net proceeds of the Private Placement will be used by the Company for general corporate purposes and capital expenditures, including but not limited to the repayment of debt obligations, working capital, and investments in additional properties.

Each Unit will be composed of one Class A Common Share in the capital of the Company (a “Common Share”) and a Common Share purchase warrant (a “Warrant”) entitling the holder to purchase one Common Share at a price of $2.00 per Common Share for a period of 24 months following the closing date. The Common Shares will be listed on the Canadian Stock Exchange (the “CSE”).

Closing is expected to take place no later than December 31, 2019, or such other date proposed by the Company and is subject to customary closing conditions, including the approval of the regulatory authorities and completion of all legal documentation. The Company may close the Private Placement in one or more closings with one or more investors acceptable to the Company.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of issuance of the securities in accordance with applicable Canadian securities legislation. In addition, the securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.

ABOUT THE DELMA GROUP INC.