What Happened In After-Hour Trades To Make Siyata Mobile (SYTA) Stock Drop?

In after-hours trading hours on Wednesday, Siyata Mobile Inc. (SYTA) fell -19.25% at $4.28. SYTA stock gained 83.39% to finish at $5.30 in the last trading session. Prices ranged between $2.83 and $9.68 for SYTA shares. SYTA stock traded 146.09 million shares, which was above its daily average of 1.68 million shares over the past 100 days.

Within the last five days, SYTA shares have gained 70.97%, while over the past month they have gained 48.04%. Following a funding agreement, SYTA stock took a dive in extended trading after rising significantly in the regular session.

SYTA has entered into which funding agreement?  

Siyata Mobile is a B2B worldwide merchant of cutting edge Push-To-Talk over Cellular (PoC) gadgets and cell promoter frameworks. SYTA arrangement of in-vehicle and tough cell phones empower specialists on call and undertaking laborers to right away impart, over a cross country cell organization of decision, to advance correspondence, increment situational mindfulness, and save lives.

SYTA’s arrangement of big business cell supporter frameworks empowers people on call and undertaking laborers to intensify its phone signal in far off regions, inside underlying structures where signals are feeble, and inside vehicles for the greatest cell signal strength conceivable.

It was reported that Siyata Mobile has entered into a funding agreement for US$6,000,000 with Lind Global Partners II, LP, an investment fund managed by The Lind Partners, an institutional asset administrator based in New York.

  • Following the execution of the agreement, SYTA expects to receive proceeds within ten (10) days.
  • Proceeds will be used to reimburse and settle convertible notes issued by SYTA.
  • An investment of US$7,200,000 is taken as a convertible note with a two-year maturity and no yearly interest fee.
  • The Note is convertible into SYTA’s common stock at a fixed conversion rate of $10.
  • The SYTA is responsible for making head installments for 18 equivalent monthly payments starting 180 days after the day of financing.
  • A reimbursement may be made in either cash or registered common shares at the discretion of SYTA.
  • In 45 days after closing, SYTA will document an enlistment proclamation covering the notes and warrants.

What are SYTA’s reimbursement terms?

Siyata Mobile (SYTA) reserves the right to repurchase exceptional Note sums whenever it likes without penalty. SYTA may exercise this right, and Lind will have the opportunity to transfer up to 25% of the Note. Further, the Note has a superior ranking to other SYTA obligations, barring specific obligations, and it’s gotten over its resources. Additionally, Lind will also receive 2,142,857 warrants exercisable for a very long time at $4.00 per share.