Kraken Robotics Inc. Announces $17.5 Million Bought Deal Public Offering

ST. JOHN’S, NEWFOUNDLAND, April 25, 2024 – Kraken Robotics Inc. (“Kraken” or the “Company“) (TSXV: PNG) (OTCQB: KRKNF) announces that it has entered into an agreement with a syndicate of investment dealers led by Cormark Securities Inc. (the “Underwriters“) pursuant to which the Underwriters have agreed to purchase 18,422,000 common shares (the “Common Shares“) from the treasury of the Company, at a price of $0.95 per Common Share (the “Offering Price“) and offer them to the public by way of short form prospectus for total gross proceeds of $17,500,900 (the “Offering“).

The Company has granted the Underwriters an option (the “Over-Allotment Option“) to purchase up to an additional 15.0% of the Common Shares of the Offering on the same terms exercisable at any time up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any.

Kraken expects to use the net proceeds to facilitate its long term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated working capital for expansion of sole-source/single award programs and high probability pipeline opportunities, further strengthen the Company’s balance sheet in anticipation of upcoming customer and partners decisions and source selection on additional large, new program and contract opportunities, and for general corporate purposes.

Closing of the Offering is expected to occur on or about May 16, 2024, and is subject to regulatory approval including that of the TSX Venture Exchange.

The Common Shares to be issued under the Offering will be offered by way of a short form prospectus in each of the Provinces of Canada, except Quebec, and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws, and certain other jurisdictions outside of Canada and the United States.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

ABOUT KRAKEN ROBOTICS

Kraken Robotics Inc. (TSX:PNG) is a marine technology firm specialising in advanced sonar and optical sensors, underwater batteries, and robotic systems for unmanned underwater vehicles (UUVs). Launched in Canada in 2012, with what started as an eight-person team a decade ago has now evolved into a 250-person organization with employees based in North America, South America, and Europe, with plans to expand further across the globe.