Savaria Corporation announces $55 million public equity offering and $25 million concurrent private placement from CDPQ

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LAVAL, Québec, Sept. 06, 2023 (GLOBE NEWSWIRE) -- Savaria Corporation (“Savaria” or the “Corporation”) (TSX: SIS), a global leader in the accessibility industry, is pleased to announce the issue and sale of common shares (“Common Shares”) pursuant to a public offering (the “Offering”) and a concurrent private placement (the “Concurrent Private Placement”, and collectively with the Offering, the “Equity Offerings”) for aggregate gross proceeds to the Corporation of approximately $80,025,500.

Under the Offering, Savaria has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., (the “Bookrunner”) and co-led by Desjardins Securities Inc., Scotiabank and TD Securities Inc. (collectively, the “Underwriters”) under which the Underwriters 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 (the “Issue Price”), for gross proceeds to the Corporation of approximately $55,013,000. Savaria has granted to the Underwriters an over-allotment option (the “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. Should the Over-Allotment Option be exercised, in whole or in part, by the Underwriters, CDPQ has the option (the “Additional Subscription 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.