Business
Savaria announces proposed private placement of up to $5.775 million
Savaria announces proposed private placement of up to $5.775 million.
About this update from Savaria Corporation
[{"type":"text","content":"\n\n\n\n\nLAVAL, QC, Dec. 1 /CNW/ - Savaria Corporation (TSX: SIS), one of North\nAmerica's leading accessibility companies, that facilitates and ensures\nmobility for the physically challenged, announces that it has signed an\nengagement letter with GMP Securities L.P. for a proposed private placement of\n2,500,000 common shares at a price of $2.10 per share, for gross proceeds to\nSavaria of $5.25 million. The Company has also granted GMP Securities L.P. an\noption, exercisable prior to the closing of the private placement, to purchase\nup to an additional 250,000 common shares at the issue price of $2.10 per\nshare, which if exercised in full would result in total gross proceeds to\nSavaria of $5.775 million.\nSavaria will use the net proceeds from the proposed offering for the\ncontinued strategic development of its business.\nThe proposed offering will be effected pursuant to prospectus exemptions\nunder applicable securities legislation. The transaction is expected to close\non or before December 15, 2005 and is subject to receipt of all necessary\nregulatory approvals. The offering will be made through a syndicate of\nunderwriters led by GMP Securities L.P., and including Acumen Capital Finance\nPartners and Octagon Capital Corporation.\nSavaria has received an advance income tax ruling from Revenu QuDebec\nconfirming that its common shares qualify under the SME Growth Stock Plan\n(\"rDegime Actions-croissance PME\"). The common shares issued in the offering\ntherefore constitute eligible shares for purposes of the SME Growth Stock\nPlan, providing a 100% deduction for Quebec income tax purposes to eligible\nindividual investors, provided certain conditions are met.\nSavaria also announces that it has completed a non-brokered private\nplacement of 286,000 common shares at a price of $2.10 per share, for proceeds\nto Savaria of $600,600. The subscribers in this private placement were Marcel\nBourassa, the President and Chief Executive Officer of the Company, Jean-Marie\nBourassa, the Chief Financial Officer of the Company, Normand Balthazard and\nRobert Berthiaume, both directors of the Company, and persons associated with\nthem. The placement was made to ensure the eligibility of Savaria under the\nSME Growth Stock Plan.\nThere are currently 27,203,262 common shares of Savaria issued and\noutstanding.\n\nForward-Looking S...