Savaria Announces the Completion of Private Placements Raising Gross Proceeds of CAD191 Million to Finance a Portion of the Purchase Price of its Proposed Acquisition of Handicare Group AB

/THIS ANNOUNCEMENT IS FOR INFORMATION ONLY AND IT IS NOT AN OFFER TO BUY OR SOLICITATION OF OFFERS TO BUY ANY SECURITIES. INFORMATION REGARDING THE OFFER TO THE SHAREHOLDERS OF HANDICARE GROUP AB AS ANNOUNCED IN A SEPARATE PRESS RELEASE IS AVAILABLE ONLY TO SHAREHOLDERS IN CERTAIN PERMITTED JURISDICTIONS. NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/

LAVAL, Québec, Feb. 19, 2021 (GLOBE NEWSWIRE) -- Savaria Corporation (TSX:SIS) (“Savaria” or the “Company”), a global leader in the accessibility industry, is pleased to announce that it has completed its previously announced private placement of subscription receipts (the “Offering”) with a syndicate of underwriters led by National Bank Financial Inc., Desjardins Capital Markets, Scotiabank, and TD Securities Inc., acting as Co-Bookrunners, and which included the participation of Cormark Securities Inc., Laurentian Bank Securities Inc., Stifel GMP and PI Financial Corp. Pursuant to the Offering, Savaria has issued an aggregate of 8,136,050 subscription receipts at a price of CAD15.00 per subscription receipt (the “Issue Price”) for gross proceeds of CAD122 million.

In addition, Savaria has also completed a concurrent private placement of subscription receipts with Caisse de dépôt et placement du Québec (“CDPQ”), who has purchased 4,600,000 subscription receipts at the Issue Price, for gross proceeds of CAD69 million. When combined with the Offering, the aggregate gross proceeds raised by Savaria from the issuance of subscription receipts (collectively, the “Equity Private Placements”) total CAD191 million. All subscription receipts issued are subject to a four-month hold period under applicable securities laws in Canada.

The subscription receipts will entitle the holder to receive one common share of Savaria (each a “Common Share”) for no additional consideration and without any further action upon the successful completion of Savaria’s recommended cash offer (the “Offer”) to acquire all the issued and outstanding shares of Handicare Group AB (STO:HANDI) (“Handicare”). The gross proceeds of the Equity Private Placements (less 50% of the underwriting fee and the expenses of the Offering) were deposited in separate escrows with Computershare Trust Company of Canada to be released to Savaria once the conditions to the Offer have been satisfied. The holders of subscription receipts will also receive upon conversion of the subscription receipts for Common Shares, in the form of a special interest payment, an amount equal to any dividends declared by Savaria and payable to holders of Common Shares of record as of dates from and including the closing date of the Equity Private Placements to but excluding the date of the conversion of subscription receipts into Common Shares. Should the conditions to the Offer not be satisfied by September 30th, 2021 or the Offer lapse, terminate or be revoked or withdrawn in accordance with its terms prior to September 30th, 2021, the gross proceeds of the Equity Private Placements will be returned to holders of subscription receipts with interest.