Baylin Technologies closes public offering of common shares

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TORONTO, Dec. 22, 2016 /CNW/ - Baylin Technologies Inc. (TSX: BYL) (the "Company" or "Baylin"), is pleased to announce that it has completed its previously announced prospectus offering (the "Offering") of 3,108,450 common shares of the Company (the "Common Shares"), which includes the exercise in full of the over-allotment option granted to the Agents (as defined below). The Common Shares were issued at a price of $1.85 per Common Share for aggregate gross proceeds of $5,750,633.

The Offering was completed by Paradigm Capital Inc. and Raymond James Ltd., as co-lead agents (the "Agents"). Miller Thomson LLP acted as counsel for Baylin and Cassels Brock & Blackwell LLP acted as counsel to the Agents in connection with the Offering.

The Corporation intends to use the net proceeds of the Offering to fund research and development of the Company's entry into the Macro Antenna sector, as well as for capital expenditures and general working capital purposes.

Early Warning Notice
Pursuant to the Offering, Mr. Jeffrey C. Royer indirectly acquired 1,709,950 Common Shares for an aggregate consideration of $3,163,408. While beneficial ownership of these common shares rests with an associate of Mr. Royer, Mr. Royer exercises control and direction over them. Prior to the Offering, Mr. Royer indirectly owned 11,559,791 Common Shares representing 61.46% of the outstanding Common Shares on an undiluted basis. Following the Offering, Mr. Royer indirectly owns 13,269,741 Common Shares, representing 60.55% of the outstanding Common Shares on an undiluted basis. The Common Shares were acquired for investment purposes and Mr. Royer may increase or decrease his ownership depending on market or other conditions. This portion of the news release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues of the Canadian Securities Administrators, which also requires an early warning report to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. A copy of Mr. Royer's early warning report in respect of this transaction will be available on the Company's issuer profile on SEDAR at www.sedar.com and available by contacting the Company as set forth below.

About Baylin
Baylin is a leading global wireless technology management company. Baylin focuses on design, development, manufacturing and delivery of leading wireless products and services. We aspire to meet our customers' needs and anticipate the direction of the market.

Forward-looking Information Cautionary Statement
Statements in this press release contain forward-looking information including, without limitation, the anticipated use of proceeds by Baylin. The intended use of the net proceeds of the Offering by Baylin might change if the board of directors of Baylin determines that it would be in the best interests of Baylin to deploy the proceeds for some other purpose. The words "will", "expect", "may" and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Baylin.

THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED STATES. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

SOURCE Baylin Technologies Inc.

Investor Relations: Kelly Myles, Marketing and Communications Manager, Baylin Technologies Inc., [email protected]