The K2 Principal Fund L.P. Acquires Shares and Warrants of Last Mile Holdings Ltd.

TORONTO, Aug 27, 2020 /CNW/ - The K2 Principal Fund L.P. ("K2") announces that as of Aug 27, 2020 the fund owns 5,651,500 common shares and 6,800,000 warrants, exercisable until Feb 2023 at C$0.60 per shares of Last Mile Holdings Ltd (f/k/a Ojo Electric Corp), (TSXV: MILE) of 595 Burrard Street Suite 3123 Vancouver BC, V7X 1J1. On a partially diluted basis K2 owns approximately 6.93% of Last Mile Holdings.

On Feb 29th, 2020 K2 purchased 6,800,000 subscription receipts. Each subscription receipt was convertible, at no additional cost, into 1 common share and1 warrant that is exercisable for 3 years at C$0.60. The conversion of the subscription receipt into units was upon the closing of the Gotcha transaction, which closed on March 4, 2020. The subscription receipts were purchased through a non-brokered private placement at a cost of C$0.40 per receipt for a total cost of $2,720,000.

Prior to the acquisition of subscription receipts, K2 did not hold any shares or warrants of Last Mile Holdings Ltd. After the acquisition, and completion of the Gotcha transaction, which closed on March 4 2020, K2 held 6,800,000 common shares and 6,800,000 warrants which expire in February, 2023, assuming the exercise of the warrants K2 would own 13,600,000 shares representing approximately 17.96% of the issued and outstanding common shares of the issuer.  K2 signed and filed an agreement with the issuer and TSXV prohibiting the fund from exercising any warrants that would result in K2 owing equivalent to or greater than 10% of the outstanding shares of the issuer. Additionally, K2 signed a securities lending arrangement for 6,800,000 million shares. This lending arrangement expired in June 2020.

After the closing of the oversubscribed private placement on Aug 21, 2020 of units priced at $0.075 K2 continues to hold 5,651,500 common shares and 6,800,000 warrants, which expire in February, 2023 at C$0.60 per share. On a partially diluted basis K2 owns approximately 6.93% of Last Mile Holdings.

K2 acquired the securities for investment purposes only and may, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over, or exercise its current rights to acquire, common shares or other securities of Last Mile Holdings Inc. through market transactions, private agreements or otherwise.

SOURCE The K2 Principal Fund L.P.