Siyata Mobile Announces Closing of approximately $4.0 Million Public Offering of Common Shares and Pre-Funded Warrants

Rhea-AI Summary

Siyata Mobile Inc. (Nasdaq: SYTA, SYTAW) has closed its previously announced public offering, raising approximately $4.0 million through the sale of common shares and pre-funded warrants. The offering was priced at $1.70 per share. Siyata, a global developer of Push-to-Talk over Cellular handsets and accessories, plans to use the proceeds for working capital, general corporate purposes, and marketing expenses. Spartan Capital Securities, acted as the sole placement agent for the offering, which was conducted under Siyata's Form F-1 registration statement. The final prospectus is available on the SEC's website.

Positive

• Successful closing of $4.0 million public offering
• Funds to be used for working capital and corporate purposes
• Potential for additional funds from future exercise of pre-funded warrants

Negative

• Potential dilution of existing shareholders' equity
• Allocation of funds to marketing expenses rather than direct business operations

Insights

Financial Analyst

Siyata Mobile's $4.0 million public offering is a double-edged sword for investors. While it provides much-needed working capital, it also signals potential financial strain. The use of pre-funded warrants suggests a strategy to mitigate dilution, but it's important to monitor their exercise and impact on share value. The allocation of funds for marketing indicates a push for brand awareness, which could drive sales but also increase expenses. Investors should closely watch the company's burn rate and path to profitability, as this capital raise may not be sufficient for long-term sustainability in the competitive PoC market.

Tech Industry Analyst

Siyata's focus on Push-to-Talk over Cellular (PoC) technology positions it in a niche but growing market. The capital raise could accelerate product development and market penetration, important in the fast-evolving telecom sector. However, the company faces stiff competition from established players. The success of this funding round will largely depend on Siyata's ability to innovate and differentiate its offerings. Investors should monitor key performance indicators such as user adoption rates and strategic partnerships to gauge the company's progress in capturing market share in the PoC space.

Market Research Analyst

The $4.0 million raise, while modest, could be a strategic move for Siyata Mobile. The company's decision to allocate funds for marketing suggests a focus on expanding market presence. However, the effectiveness of this strategy in the B2B-focused PoC market remains to be seen. The low offering price of $1.70 per share indicates potential market skepticism or investor interest. Shareholders should watch for concrete metrics on customer acquisition costs and lifetime value to assess the return on this investment. The success of this offering will likely hinge on Siyata's ability to translate increased visibility into tangible sales growth.

VANCOUVER, Canada, Aug. 15, 2024 /PRNewswire/ -- Siyata Mobile Inc. (Nasdaq: SYTA) (Nasdaq: SYTAW) ("Siyata" or the "Company"), a global developer and vendor of Push-to-Talk over Cellular (PoC) handsets and accessories, today announced the closing of its previously announced public offering of approximately $4.0 million of common shares, and pre-funded warrants to purchase common shares at a public offering price of $1.70 per share. The gross proceeds of the offering do not include any proceeds to the Company from the future exercise of the pre-funded warrants issued in the offering. The Company intends to use the proceeds from the offering for working capital, general corporate purposes, payments to a third-party marketing agency for services related to marketing and advertising.

Spartan Capital Securities, LLC acted as the sole placement agent in connection with the offering.

The offering was conducted pursuant to the Company's registration statement on Form F-1, as amended, (File No. 333-281218) initially filed with the Securities and Exchange Commission (the "SEC") on August 2, 2024, and declared effective by the SEC on August 13, 2024. A final prospectus relating to the offering has been filed with the SEC and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus relating to this offering may be obtained from Spartan Capital Securities, LLC, at 45 Broadway, 19th Floor, New York, NY 10006.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Siyata Mobile

Siyata Mobile Inc. is a B2B global developer and vendor of next-generation Push-To-Talk over Cellular handsets and accessories. Its portfolio of rugged PTT handsets and accessories enables first responders and enterprise workers to instantly communicate over a nationwide cellular network of choice, to increase situational awareness and save lives. Police, fire and ambulance organizations as well as schools, utilities, security companies, hospitals, waste management companies, resorts and many other organizations use Siyata PTT handsets and accessories today.

In support of our Push-to-Talk handsets and accessories, Siyata also offers enterprise-grade In-Vehicle solutions and Cellular Booster systems enabling our customers to communicate effectively when they are in their vehicles, and even in areas where the cellular signal is weak.

Siyata sells its portfolio through leading North American cellular carriers, and through international cellular carriers and distributors.

Siyata's common shares trade on the Nasdaq under the symbol "SYTA" and its previously issued warrants trade on the Nasdaq under the symbol "SYTAW."

Visit siyatamobile.com and unidencellular.com to learn more.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Siyata's current expectations, they are subject to various risks and uncertainties, and actual results, performance, or achievements of Siyata could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in Siyata's filings with the Securities and Exchange Commission ("SEC") and in subsequent filings with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites and social media have been provided as a convenience, and the information contained on such websites or social media is not incorporated by reference into this press release. 

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SOURCE Siyata Mobile Inc.

FAQ

What was the price per share for Siyata Mobile's (SYTA) public offering on August 15, 2024?

The public offering price for Siyata Mobile's (SYTA) common shares and pre-funded warrants was $1.70 per share.

How much did Siyata Mobile (SYTA) raise in its public offering on August 15, 2024?

Siyata Mobile (SYTA) raised approximately $4.0 million in its public offering of common shares and pre-funded warrants.

What will Siyata Mobile (SYTA) use the proceeds from its August 15, 2024 offering for?

Siyata Mobile (SYTA) intends to use the proceeds for working capital, general corporate purposes, and payments to a third-party marketing agency for marketing and advertising services.

Who was the placement agent for Siyata Mobile's (SYTA) public offering on August 15, 2024?

Spartan Capital Securities, acted as the sole placement agent for Siyata Mobile's (SYTA) public offering.