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Laval, Québec, April 1, 2019 – Savaria Corporation (“Savaria” or the “Corporation”) (TSX: SIS), one of the global leaders in the accessibility industry, today announced that it has entered into an agreement to sell to a syndicate of underwriters led by Desjardins Capital Markets (collectively, the “Underwriters”) on a bought deal private placement basis, 5,000,000 common shares of the Corporation (the “Shares”) at a price of $14.15per Share (the “Offering Price”), for gross proceeds to the Corporation of $70,750,000 (the “Offering”).
The Underwriters have also been granted an option, exercisable in whole or in part any time up to 48 hours prior to the closing date of the Offering, to purchase for resale up to an additional 750,000 Shares at the Offering Price, for aggregate gross proceeds to the Corporation of $10,612,500 in the event the Underwriters exercise this option in full.
The net proceeds of the Offering will be used to reduce indebtedness, fund future growth initiatives and for general corporate purposes.
Marcel Bourassa, the Corporation’s President and Chief Executive Officer, Jean-Marie Bourassa, the Corporation’s Chief Financial Officer and Sébastien Bourassa, the Corporation’s Vice-President Operations and Integration, have together committed to subscribe in the Offering for 71,000 Shares at the Offering Price.
“This financing offers Savaria new opportunities to grow and take advantage of strategic acquisitions as well as investments in the current business to maximize sales. I thank our investors for their support and participation in shaping our future growth,” stated Marcel Bourassa, President and CEO of Savaria.
The Offering is expected to close on or about April 24, 2019 and is subject to certain conditions, including the receipt of all necessary regulatory approvals. The securities issued by Savaria in the Offering will be subject to a hold period of four months and one day in Canada calculated from the closing date of the Offering.
The Shares will be sold in Canada on a private placement basis to "accredited investors" under National Instrument 45-106 and pursuant to certain other available and agreed upon prospectus exemptions. The common shares to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Savaria Corporation is one of the global leaders in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, elevators for home and commercial use, as well as ceiling lifts. It also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, mattress overlays and foam pillows for the retail market and certain products for the industrial market. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. Savaria records approximately 75% of its revenue outside of Canada, primarily in the United States. It operates a sales network of some 500 dealers worldwide and 28 direct sales offices in North America, Europe (Switzerland, Germany, Italy, Czech Republic and Poland), Australia and China. Savaria employs approximately 1,400 people globally and its plants are located in Canada: Laval and Magog (Québec), Brampton, Beamsville and Toronto (Ontario) and Surrey (British Columbia), in the United States at Greenville (South Carolina), in Huizhou (China) and in Milan (Italy).
Cautionary Notice Regarding Forward Looking Statements
The statements set forth in this press release, which describe Savaria’s objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as “will”, “plan”, “evaluate”, “estimate”, “believe”, “expect” and other related expressions are used to identify such statements. Savaria would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Savaria’s actual results and the projections or expectations set forth in the forward-looking statements include the state of the financial markets, the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in margins, competition, exchange rate variations, and such other risks as described in detail from time to time in documents filed by Savaria with securities regulatory authorities in Canada. Unless otherwise required by applicable securities laws, Savaria disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this press release is based on information available as of the date of the release.
For more information, please contact:
Nicolas Rimbert, CFA