SOURCE: Delivra Corp.

Delivra Corp.

September 15, 2016 17:00 ET

Delivra Corp. Issues $2,020,900, 6% Unsecured Convertible Debentures

TORONTO, ON--(Marketwired - September 15, 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") is pleased to announce the completion of a non-brokered private placement of 6% unsecured convertible debentures (the "Private Placement") in the aggregate principal amount of $2,020,900. The Company intends to use the proceeds of the Private Placement for a roll-out of its products into the United States and for general working capital purposes.

The Private Placement included 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 also received a total of 404,180 common share purchase warrants of the Company ("Warrants"), equal to 20% of the aggregate value of Debentures issued. Each whole Warrant is 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.

In connection with the Private Placement, the company paid finders' fees equal to $100,495 in cash and 182,718 number of common share purchase warrants (each a "Broker Warrant"), each such Broker Warrant being exercisable for one (1) common share of the Company at a price per share of $0.55 for a period of 18 months from the date of issuance. All securities issued pursuant to the Private Placement will be subject to a four-month hold period unless, on an earlier date, such securities are qualified for distribution by a prospectus.

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.

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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