Ballard Closes US$550 Million Bought Deal Offering of Common Shares

Rhea-AI Summary

Ballard Power Systems (NASDAQ: BLDP) has successfully completed a bought deal offering, raising US$550.19 million by selling 14,870,000 common shares at US$37.00 each. An additional 2,230,500 shares may be purchased by underwriters for over-allotments, potentially bringing in US$82.53 million more. This offering is intended to support Ballard's mission of delivering sustainable fuel cell power for various mobility applications. The common shares are offered through a short form prospectus in Canada (excluding Quebec) and under a registration statement in the U.S.

Positive

• Successful closing of a US$550.19 million offering.
• Potential for an additional US$82.53 million from the over-allotment option.
• Funds aimed at advancing sustainable fuel cell technology.

Negative

• Dilution risk for existing shareholders due to the issuance of new shares.

VANCOUVER, BC, Feb. 23, 2021 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLDP) today announced the closing of the previously announced bought deal offering of 14,870,000 common shares of the Company (the "Common Shares") at a price of US$37.00 per Common Share (the "Offering Price") for gross proceeds of US$550,190,000 (the "Offering").

TD Securities Inc. and National Bank Financial Inc. acted as joint bookrunners for the Offering, with a syndicate of underwriters which includes BMO Nesbitt Burns Inc., CIBC World Markets Inc., Raymond James Ltd., and Cormark Securities Inc. (collectively, the "Underwriters").

The Underwriters have the option to purchase up to an additional 2,230,500 Common Shares at the Offering Price to cover over-allotments, if any, and for market stabilization purposes, for a period of 30 days after the closing date of the Offering (the "Over-Allotment Option"). The exercise of the Over-Allotment Option may result in additional gross proceeds of up to US$82,528,500.

The Common Shares are offered by way of a short form prospectus filed in all of the provinces of Canada, excluding Quebec, and are offered in the United States pursuant to a registration statement on Form F-10 filed under the Canada/U.S. multijurisdictional disclosure system, and on a private placement basis in certain jurisdictions outside Canada and the United States pursuant to applicable prospectus exemptions.

No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

About Ballard Power Systems     
Ballard Power Systems' (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, passenger cars and forklift trucks. To learn more about Ballard, please visit www.ballard.com.

Important Cautions Regarding Forward-Looking Statements       
This release contains forward-looking statements concerning the Over-Allotment Option and the amount of the Offering. These forward-looking statements reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward-looking statements are based on the opinions and estimates of management as of the date hereof, including Ballard's assumptions relating to its financial forecasts and expectations regarding general market conditions and market demand. These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form and the final short form prospectus dated February 18, 2021 relating to the Offering, which are available at www.sedar.com. Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward-looking statements, other than as required under applicable legislation.

A written prospectus relating to the Offering may be obtained by requesting it from TD Securities Inc. in Canada, Attention: Symcor, NPM (tel: 289-360-2009, email: sdcconfirms@td.com), 1625 Tech Avenue, Mississauga ON L4W 5P5; or TD Securities (USA) LLC in the U.S. (tel: 212-827-7392), 31 W 52^nd Street, New York NY 10019; or National Bank Financial Inc.: Equity Capital Markets, 130 King Street West, 4th Floor Podium, email: ecm-origination@nbc.ca.

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SOURCE Ballard Power Systems Inc.

FAQ

What is the total amount raised by Ballard Power Systems in the recent offering?

Ballard Power Systems raised US$550.19 million through the recent offering.

How many shares did Ballard Power Systems offer in the deal?

The company offered 14,870,000 common shares in the deal.

What is the offering price for the common shares of Ballard Power Systems?

The offering price for the common shares was set at US$37.00 each.

What is the potential additional revenue from the over-allotment option?

The over-allotment option may result in additional revenue of up to US$82.53 million.

What are the implications of the offering for existing shareholders?

There is a risk of dilution for existing shareholders due to the issuance of new shares.