SOURCE: Delivra Corp.

Delivra Corp.

August 31, 2016 07:00 ET

Delivra Corp. Announces Unsecured Convertible Debenture Financing

TORONTO, ON--(Marketwired - August 31, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Delivra Corp. (TSX VENTURE: DVA) ("Delivra" or the "Company") announces that it intends to complete a non-brokered private placement of unsecured convertible debentures (the "Private Placement") in an aggregate principal amount up to approximately $2,000,000.

The Financing will include the issuance of debentures (the "Debentures") maturing one (1) year from the date of issuance and bearing interest at a rate of 6% per annum. The Debentures are convertible into units of the Company ("Debenture Units") at a price per unit equal to $0.55. Each Debenture Unit will be composed of one (1) common share of the Company and one-half (1/2) of a common share purchase warrant, each such whole warrant being exercisable for one (1) common share of the Company at a price per share of $0.80, for a period of 18 months from the date of issuance. The Debentures are subject to automatic conversion on the earlier of (i) four months and one day from the date of issuance of the Debentures, and (ii) the third business day following the date that a receipt is issued for a final prospectus qualifying the distribution of the common shares and common share purchase warrants issuable on conversion of the Debentures. If the Company completes a public offering of securities having an associated issuance price of $0.50 or less in advance of such automatic conversion of Debentures, the Company will issue an additional one quarter of one (1/4) common share purchase warrant with each Debenture Unit.

Purchasers of Debentures under the Private Placement will also receive 20% of the aggregate value of Debentures purchased in common share purchase warrants of the Company ("Warrants"). Each whole Warrant will be exercisable for one (1) common share of the Company at a price per share of $0.75 for a period of 18 months from the date of issuance. For example, a purchaser of $100,000 in principal amount of Debentures will also receive 20,000 Warrants.

In connection with the Private Placement, the company may pay finders' fees in cash or securities or a combination of both, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the Private Placement will be subject to a four-month hold period. The Private Placement is subject to approval by the TSX Venture Exchange.

ABOUT DELIVRA CORP.

Delivra is a developer of transdermal technologies for the delivery of pharmaceutical and natural molecules, through the skin, rather than via pills. Delivra manufactures and sells a growing line of natural topical creams under the LivReliefTM brand, for conditions such as joint and muscle pain, nerve pain, varicose veins, wound healing, and sports performance. LivRelief products are available in pharmacies, grocery chains, and independent health food stores across Canada, and on-line at www.livrelief.com. LivRelief products were launched for on-line sales in the United States in Q4 2015. In parallel with its consumer products business, Delivra also has a mandate to license its unique, proven, and patent-pending delivery platform to global pharmaceutical companies for the transdermal delivery of third party active ingredients to treat a broad range of conditions. With a global transdermal drug delivery market forecast to grow to USD $40 billion by 2018 (Source: Kelly Scientific), Delivra believes the licensing opportunity is robust. Delivra is headquartered in Burlington, Ontario and has a research and development laboratory in Charlottetown, PEI.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, such as without limitation, the risk that the Company is not able to find suitable investors for the Private Placement or does not receive the approval of the TSX Venture Exchange. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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