Kraken Robotics Announces $10.0 Million Bought Deal Prospectus Offering

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/

TORONTO, Oct. 1, 2020 /CNW/ - Kraken Robotics Inc. ("Kraken" or the "Company") (TSXV: PNG) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. (the "Lead Underwriter") on behalf of a syndicate of underwriters (the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a "bought deal" basis, 15,000,000 common shares (the "Common Shares") of the Company at a price of $0.67 per Common Share (the "Offering Price") for aggregate gross proceeds of $10,050,000 to the Company (the "Offering").

The Company has also granted the Underwriters an over-allotment option to purchase up to an additional 2,250,000 Common Shares at the Offering Price, exercisable in whole or in part at any time for a period of 30 days from the closing date of the Offering. If the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be $11,557,500.

The Company intends to use the net proceeds from the Offering to accelerate its Robotics as a Service recurring revenue model, for leasehold improvements, capital expenditures, parts and inventory, future acquisitions and for general corporate and working capital purposes.

The Common Shares will be offered: (a) by way of a short form prospectus to be filed in each of the provinces of Canada, other than Québec and elsewhere on a private placement basis in sales exempt from applicable prospectus and/or registration requirements.

The Offering is expected to close on or about October 26, 2020, or such other date as may be agreed upon by the Company and the Underwriters, and is subject to customary closing conditions, including required approvals of the TSX Venture Exchange ("TSXV").

The securities offered pursuant to the Offering 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 U.S. state securities laws, and may not be offered or sold in the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Kraken

Kraken Robotics Inc. (TSX.V:PNG) (OTCQB: KRKNF) is a marine technology company dedicated to the production and sale of software-centric sensors, subsea batteries and thrusters and underwater robotic systems. The company is headquartered in St. John's, Newfoundland with offices in Dartmouth, Nova Scotia; Toronto, Ontario; Bremen & Rostock, Germany; and Boston, Massachusetts. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter. For more information, please visit www.krakenrobotics.com, www.krakenrobotik.de, www.krakenpower.de. Find us on social media on Twitter (@krakenrobotics), Facebook (@krakenroboticsinc) and LinkedIn.

For more information, visit www.krakenrobotics.com.

Forward-Looking Information

Certain information in this press release constitutes forward-looking information within the meaning of applicable Canadian securities legislation. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Kraken as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, completion of the Offering and the factors described in greater detail in the "Risk Factors" section of our Annual Information Form dated August 27, 2020 available at www.sedar.com, and the "Risk Factors" section of the final prospectus relating to the Offering, which will be available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Kraken; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Kraken expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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 press release.

SOURCE Kraken Robotics Inc.

Joe MacKay, Chief Financial Officer, [phone], [email protected]; Sean Peasgood, Investor Relations, [phone], [email protected]