Laurentian Bank Securities led deal to fund product development
By Jennifer Chiou
New York, April 15 - Savaria Corp. announced the completion of its bought-deal private placement of units. It raised C$18.69 million through the sale of 5.75 million units of one common share and one half-share warrant, including a fully exercised greenshoe.
When the deal was announced, the company was set for a C$16.25 million private placement with agent Laurentian Bank Securities Inc., which had a C$2.44 million greenshoe.
The company sold the units at C$3.25 each. Each whole three-year warrant will be exercisable at C$4.25. The strike price reflects a 20.74% premium to the March 25 closing share price of C$3.52.
PI Financial Corp. assisted in the offering.
As reported, president and chief executive officer Marcel Bourassa and chief financial officer Jean-Marie Bourassa were among the investors.
Proceeds will be used for product development, working capital and general corporate purposes.
Based in Laval, Quebec, Savaria distributes mobility products for the physically challenged.
| Issuer: | Savaria Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$18,687,500, including C$2,437,500 greenshoe
|
| Units: | 5.75 million
|
| Price: | C$3.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$4.35
|
| Agent: | Laurentian Bank Securities Inc. (lead)
|
| Investors: | Marcel Bourassa and Jean-Marie Bourassa
|
| Pricing date: | March 26
|
| Settlement date: | April 15
|
| Stock symbol: | Toronto: SIS
|
| Stock price: | C$3.52 at close March 25
|
| Market capitalization: | C$81.22 million
|
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