Savaria announces proposed private placement of up to $5.775 million

About this update from Savaria Corporation

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.

View stock analysis, news, and events for Savaria Corporation