Savaria Announces $70,750,000 Bought Deal Private Placement of Common Shares
02 April 2019 - 7:29AM
Not for dissemination in the United States or
through any wire service in the United States.Failure to comply
with this restriction may constitute a violation of United States
securities laws.
Savaria Corporation (“Savaria” or the “Corporation”) (TSX: SIS),
one of the global leaders in the accessibility industry, today
announced that it has entered into an agreement to sell to a
syndicate of underwriters led by Desjardins Capital Markets
(collectively, the “Underwriters”) on a bought deal private
placement basis, 5,000,000 common shares of the Corporation (the
“Shares”) at a price of $14.15 per Share (the “Offering Price”),
for gross proceeds to the Corporation of $70,750,000 (the
“Offering”).
The Underwriters have also been granted an
option, exercisable in whole or in part any time up to 48 hours
prior to the closing date of the Offering, to purchase for resale
up to an additional 750,000 Shares at the Offering Price, for
aggregate gross proceeds to the Corporation of $10,612,500 in the
event the Underwriters exercise this option in full.
The net proceeds of the Offering will be used to
reduce indebtedness, fund future growth initiatives and for general
corporate purposes.
Marcel Bourassa, the Corporation’s President and
Chief Executive Officer, Jean-Marie Bourassa, the Corporation’s
Chief Financial Officer and Sébastien Bourassa, the Corporation’s
Vice-President Operations and Integration, have together committed
to subscribe in the Offering for 71,000 Shares at the Offering
Price.
“This financing offers Savaria new opportunities
to grow and take advantage of strategic acquisitions as well as
investments in the current business to maximize sales. I thank our
investors for their support and participation in shaping our future
growth,” stated Marcel Bourassa, President and CEO of Savaria.
The Offering is expected to close on or about
April 24, 2019 and is subject to certain conditions, including the
receipt of all necessary regulatory approvals. The securities
issued by Savaria in the Offering will be subject to a hold period
of four months and one day in Canada calculated from the closing
date of the Offering.
The Shares will be sold in Canada on a private
placement basis to "accredited investors" under National Instrument
45-106 and pursuant to certain other available and agreed upon
prospectus exemptions. The common shares to be offered pursuant to
the Offering have not been, and will not be, registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold within the United States or to, or for the account or benefit
of, U.S. persons absent registration or an applicable exemption
from the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any offer, solicitation or sale of the
securities, in any jurisdiction in which such offer, solicitation
or sale would be unlawful.
About SavariaSavaria
Corporation is one of the global leaders in the accessibility
industry. It provides accessibility solutions for the physically
challenged to increase their comfort, their mobility and their
independence. Its product line is one of the most comprehensive on
the market. Savaria designs, manufactures, distributes and installs
accessibility equipment, such as stairlifts for straight and curved
stairs, vertical and inclined wheelchair lifts, elevators for home
and commercial use, as well as ceiling lifts. It also manufactures
and markets a comprehensive selection of pressure management
products for the medical market, medical beds for the long-term
care market, mattress overlays and foam pillows for the retail
market and certain products for the industrial market. In addition,
Savaria converts and adapts vehicles to be wheelchair accessible.
Savaria records approximately 75% of its revenue outside of Canada,
primarily in the United States. It operates a sales network of some
500 dealers worldwide and 28 direct sales offices in North America,
Europe (Switzerland, Germany, Italy, Czech Republic and Poland),
Australia and China. Savaria employs approximately 1,400 people
globally and its plants are located in Canada: Laval and Magog
(Québec), Brampton, Beamsville and Toronto (Ontario) and Surrey
(British Columbia), in the United States at Greenville (South
Carolina), in Huizhou (China) and in Milan (Italy).
Cautionary Notice Regarding Forward
Looking StatementsThe statements set forth in this press
release, which describe Savaria’s objectives, projections,
estimates, expectations or forecasts, may constitute
forward-looking statements within the meaning of securities
legislation. Positive or negative verbs such as “will”, “plan”,
“evaluate”, “estimate”, “believe”, “expect” and other related
expressions are used to identify such statements. Savaria would
like to point out that, by their very nature, forward-looking
statements involve risks and uncertainties such that its results,
or the measures it adopts, could differ materially from those
indicated or underlying these statements, or could have an impact
on the degree of realization of a particular projection. Major
factors that may lead to a material difference between Savaria’s
actual results and the projections or expectations set forth in the
forward-looking statements include the state of the financial
markets, the effects of the integration of acquired businesses and
the ability to achieve projected synergies, fluctuations in
margins, competition, exchange rate variations, and such other
risks as described in detail from time to time in documents filed
by Savaria with securities regulatory authorities in Canada. Unless
otherwise required by applicable securities laws, Savaria disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking information in this press release
is based on information available as of the date of the
release.
For more information, please contact:
Nicolas Rimbert,Vice-President, Corporate
Developmentnrimbert@savaria.com1-800-931-5655, ext. 248 |
Marcel BourassaPresident and Chief Executive
Officermarcel.bourassa@savaria.com1-800-661-5112 |
www.savaria.com
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