Stantec Announces a $250 Million Public Offering of Common Shares

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

EDMONTON, Alberta, Nov. 20, 2023 (GLOBE NEWSWIRE) -- Stantec Inc. (the “Corporation” or “Stantec”) (TSX, NYSE: STN), a global leader in sustainable design and engineering, has entered into an agreement with National Bank Financial Inc. and CIBC Capital Markets, acting as co-bookrunners, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Corporation will issue from treasury, and the Underwriters shall purchase on a “bought deal” basis, 2,703,000 common shares (the “Shares”) at a price of $92.50 (the “Offer Price”) for gross proceeds to the Corporation of approximately $250 million (the “Offering”).

Stantec intends to use the net proceeds of the Offering to repay balances outstanding on its revolving credit facility with the intention of creating additional capacity to fund future acquisition opportunities and growth initiatives, as well as for general corporate purposes.

On December 5, 2023, Stantec will release its 2024-2026 Strategic Plan laying out its overall objectives for the next three years. The Offering will be an integral part of the 2024-2026 Strategic Plan, positioning Stantec to achieve its new growth objectives. Stantec continues to see significant acquisition opportunities in all its sectors and remains committed to executing on its expansion plans by capitalizing on accretive opportunities that enhance its operational profile.

“We continue to believe that deploying capital towards strategic, accretive growth creates the best long-term value for our stakeholders,” said Gord Johnston, Stantec’s President and CEO. “This Offering signals our confidence in the robustness of the acquisition landscape and, when combined with our strong balance sheet, positions us to be opportunistic for continued growth.”

The Underwriters have been granted an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part on the same terms as the Offering for a period of 30 days from the closing of the Offering, to purchase additional Shares, representing up to 15% of the size of Offering, for additional gross proceeds of up to $37,504,125.

The Shares to be issued pursuant to the Offering and Over-Allotment Option will be offered in all provinces and territories of Canada by way of a prospectus supplement (the “Prospectus Supplement”) to the short form base shelf prospectus (the “Shelf Prospectus”) of the Corporation dated November 18, 2022. The Shares will also be offered in the United States by way of private placement. The Offering is made only under the Shelf Prospectus and the Prospectus Supplement, which contain important detailed information about the Shares. Before investing, prospective purchasers should read the Shelf Prospectus, the Prospectus Supplement and the documents incorporated by reference therein for more complete information about Stantec and the Offering.