04:50 PM EDT, 09/06/2023 (MT Newswires) -- Savaria Corporation (TSX: SIS), a global player in the accessibility industry, after trade Wednesday announced the issue and sale of common shares pursuant to a public offering and a concurrent private placement for aggregate gross proceeds to the Corporation of approximately $80,025,500.
Under the Offering, Savaria entered into an agreement with a syndicate of underwriters that have agreed to purchase, on a bought deal basis, 3,794,000 Common Shares from treasury at a purchase price of $14.50 per Common Share, for gross proceeds to the corporation of approximately $55,013,000. Savaria has granted to the underwriters an over-allotment option, exercisable in whole or in part on the same terms as the Offering, to purchase up to an additional 569,100 Common Shares at the Issue Price exercisable at any time before the expiry of 30 days following the closing of the Offering, which, if exercised, would result in additional gross proceeds of up to $8,251,950.
Under the Concurrent Private Placement, Savaria has entered into an agreement with CDPQ, under which it will issue and sell 1,725,000 Common Shares at the Issue Price for gross proceeds to the corporation of approximately $25,012,500. SIS said should the Over-Allotment Option be exercised, in whole or in part, by the underwriters, CDPQ has the option to purchase additional Common Shares under the Concurrent Private Placement in the same proportion to the Common Shares that are purchased by the underwriters pursuant to the Over-Allotment Option, which, if exercised, would result in additional gross proceeds of up to $3,751,875. The Common Shares issued pursuant to the Concurrent Private Placement will be subject to a statutory hold period of four months from the date of their issuance, in accordance with Canadian securities regulations.
Wednesday's statement said the Common Shares issued pursuant to the Offering will be offered in all provinces of Canada pursuant to a short form prospectus to be filed by Savaria. The Common Shares issued pursuant to the Offering will also be offered in the United States.
SIS said the total net proceeds of the Equity Offerings will be used to reduce indebtedness under the corporation's existing revolving credit facility, thereby providing financial flexibility to fund growth initiatives and for general corporate purposes.
"The Equity Offerings will provide Savaria with added flexibility to pursue the corporation's future growth objectives while maintaining a strong balance sheet," said Marcel Bourassa, President and Chief Executive Officer.
"With this additional investment, CDPQ is renewing its support for the company to facilitate its expansion and long-term projects," said Kim Thomassin, Executive Vice-President and Head of Quebec at CDPQ.