DAYMAK SIGNS EXCLUSIVE DEALER AGREEMENT FOR QUEBEC AND PROVIDES UPDATE ON FINANCING INVOLVING BLACK BIRCH CAPITAL ACQUISITION III CORP.
Not for distribution to United States newswire services or for release publication, distribution or dissemination directly, or indirectly, in whole or in part, in or into the United States.
January 7, 2015 – Toronto, Ontario – Daymak Inc. (“Daymak”) is pleased to announce that it has signed an agreement for exclusive distribution for Quebec with Superscooter.ca Inc. (“SuperScooter”). Effective Q4 2014, the agreement includes a minimum purchase guarantee by SuperScooter of Daymak products and enables Daymak to develop the light electric vehicle market in Quebec. Under the agreement, SuperScooter will provide warehousing and localization of all marketing materials including a French language website for Daymak.
“We are very pleased with this agreement. It opens the door to the Quebec market for all Daymak products and it is part of our long term expansion plan,” stated Aldo Baiocchi, Vice President of Product Development at Daymak. “There has been so much interest for Daymak’s Beast and Daymak scooters that it made sense for us to sign an exclusive agreement” stated Richard Boisvert, President of SuperScooter.
Update on Financing
Daymak is pleased to announce that the final prospectus (the “Prospectus”) of Black Birch Capital Acquisition III Corp. (“Black Birch”) has been filed with the securities commissions in British Columbia, Alberta and Ontario. The Prospectus offers a minimum of 7,500,000 units of Black Birch (each a “Unit”) and a maximum of 12,500,000 Units at $0.40 per Unit for minimum aggregate gross proceeds of $3,000,000 and maximum aggregate gross proceeds of $5,000,000 (the “Financing”).
Each Unit offered consists of one Black Birch common share (each a “Black Birch Share”) and one-half of one warrant. Each warrant is exercisable for one Black Birch Share for a period of 24 months from the closing of the Financing at an exercise price of $0.50 per share. The Financing is open to residents of British Columbia, Alberta and Ontario and the Units are qualified investments for RRSP and TFSA accounts.
The Financing is being conducted in connection with a proposed reverse takeover transaction whereby Black Birch will acquire all of the issued and outstanding securities of Daymak (the “Transaction”). The Transaction will be conducted in accordance with the terms and conditions of a definitive amalgamation agreement (the “Acquisition Agreement”) dated November 5, 2014 between Daymak, Black Birch and 2425632 Ontario Corp., a wholly owned subsidiary of Black Birch. On completion of the Transaction and the Financing, the current business of Daymak will become the business of Black Birch and Black Birch is expected to be renamed Daymak Technology Inc. Also on completion of the Transaction and the Financing, Daymak Technology Inc. is expected to be listed on the TSX Venture Exchange (the “TSXV”).
A portion of the proceeds of the Offering is intended to be spent on market development in the United States and to further develop the Daymak Drive System technology.
Mr. Baiocchi stated “we are extremely excited about the prospects of becoming a listed issuer on the TSX Venture Exchange. With the proceeds raised from the Financing, we expect to be in a position to expedite our technological developments. We also anticipate being able to expand into new markets, such as in the United States, where we aim to replicate the business formula that has brought us success in the Ontario ebike market (a historically challenging market due to the local climate).”
Daymak and Black Birch have engaged Jacob Securities Inc. (the “Agent”) as exclusive agent to conduct the Financing on a commercially reasonable efforts basis. The Financing is being conducted pursuant to the terms and conditions of an agency agreement (the “Agency Agreement”) dated November 5, 2014 between Black Birch, Daymak and the Agent.
Completion of the Transaction remains subject to a number of conditions precedent, including completion of (i) the Financing, (ii) a share consolidation by Black Birch, and (iii) a share split by Daymak, all as further detailed in the Acquisition Agreement and the Prospectus. For further details regarding the Transaction and the Financing, please refer to the Prospectus, the Acquisition Agreement and the Agency Agreement, copies of which are available under Black Birch’s profile on SEDAR at www.sedar.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Daymak, a Toronto-based company incorporated in 2002, is a developer and distributor of personal light electric vehicles with over 150 dealers across Canada. Daymak’s main technology is the Daymak Drive System (DDS), currently in development. The Daymak Drive System is a self charging system made up of wireless and wired controllers, encased battery, solar panels, and a wireless throttle for light electric vehicles. Daymak's accolades include the Clean Tech North Award and Profit Magazine's Top 100, 200 & 500 Canada's Fastest Growing Companies. Daymak was named one of Ontario’s greenest companies in 2012.
SuperScooter is distributor of light electric vehicles, with its head office in Quebec City. For more information, please visit superscooter.ca.
For further information about Daymak Inc. please contact:
Jason Roy, Vice President
Telephone: 416-658-3993 ext. 261
The TSXV has in no way passed upon the merits of the Transaction. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Certain portions of this press release contain forward-looking statements. Such forward-looking statements include but are not limited to statements concerning completion of the Financing and the Transaction and the use of proceeds of the Financing. These statements are based on current expectations that are subject to risks, uncertainties and assumptions and neither Black Birch nor Daymak can give no assurance that these expectations are correct. Actual results may differ materially from those currently anticipated for various reasons generally beyond the control of either Black Birch of Daymak, including but not limited to, the ability of Black Birch or Daymak to satisfy all conditions precedent to the completion of the Financing and the Transaction, including receipt of all corporate and regulatory approvals. Additional important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed in Black Birch’s periodic reports filed with the Ontario Securities Commission and other regulatory authorities and in the Prospectus. Neither Black Birch nor Daymak have an intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws. Forward-looking statements in this press release describe Black Birch’s and Daymak’s reasonable expectations as of the date hereof.