LAVAL, QC, Dec. 1 /CNW/ - Savaria Corporation (TSX: SIS), one of North
America's leading accessibility companies, that facilitates and ensures
mobility for the physically challenged, announces that it has signed an
engagement letter with GMP Securities L.P. for a proposed private placement of
2,500,000 common shares at a price of $2.10 per share, for gross proceeds to
Savaria of $5.25 million. The Company has also granted GMP Securities L.P. an
option, exercisable prior to the closing of the private placement, to purchase
up to an additional 250,000 common shares at the issue price of $2.10 per
share, which if exercised in full would result in total gross proceeds to
Savaria of $5.775 million.
Savaria will use the net proceeds from the proposed offering for the
continued strategic development of its business.
The proposed offering will be effected pursuant to prospectus exemptions
under applicable securities legislation. The transaction is expected to close
on or before December 15, 2005 and is subject to receipt of all necessary
regulatory approvals. The offering will be made through a syndicate of
underwriters led by GMP Securities L.P., and including Acumen Capital Finance
Partners and Octagon Capital Corporation.
Savaria has received an advance income tax ruling from Revenu QuDebec
confirming that its common shares qualify under the SME Growth Stock Plan
("rDegime Actions-croissance PME"). The common shares issued in the offering
therefore constitute eligible shares for purposes of the SME Growth Stock
Plan, providing a 100% deduction for Quebec income tax purposes to eligible
individual investors, provided certain conditions are met.
Savaria also announces that it has completed a non-brokered private
placement of 286,000 common shares at a price of $2.10 per share, for proceeds
to Savaria of $600,600. The subscribers in this private placement were Marcel
Bourassa, the President and Chief Executive Officer of the Company, Jean-Marie
Bourassa, the Chief Financial Officer of the Company, Normand Balthazard and
Robert Berthiaume, both directors of the Company, and persons associated with
them. The placement was made to ensure the eligibility of Savaria under the
SME Growth Stock Plan.
There are currently 27,203,262 common shares of Savaria issued and
outstanding.
Forward-Looking Statements
Certain statements in this press release may be forward-looking. Forward-
looking statements involve known and unknown risks, uncertainties or other
factors that may cause the Company's actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.
Savaria Corporation (www.savaria.com) is Canada's leader and the second
largest accessibility company in North America. The Company designs,
manufactures and distributes products, meeting the needs of people with
mobility challenges, including stairlifts, converted and adapted vehicles for
the physically disabled, vertical and inclined platform lifts and elevators
for residential use. Savaria's products, sold through a network of over 400
retailers in North America, generate sales exceeding $60 million. The Company
records over 50% of its sales outside Canada and employs close to 400 people.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), or any state securities
laws and may not be offered or sold within the United States or to United
States Persons unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is available.
