DIRTT announces completion of C$35 million convertible debenture bought deal financing
DIRTT Environmental Solutions Ltd. (TSX:DRT, NASDAQ:DRTT) announced the closing of C$35 million in 6.00% convertible unsecured subordinated debentures. The offering was managed by a syndicate led by National Bank Financial Inc., with an option for an additional C$5.25 million. Proceeds will support capital expenditures, technology innovation, and general corporate purposes, including sales and marketing. The debentures will be listed under the symbol 'DRT.DB' on the Toronto Stock Exchange.
- Successful closing of C$35 million in convertible debentures will enhance capital for technology innovation.
- Listing of debentures on the Toronto Stock Exchange may provide increased liquidity.
- The offering could lead to dilution of existing shareholder value if converted into equity.
- Reliance on market conditions and business performance may pose risks to future financing.
CALGARY, Alberta, Jan. 25, 2021 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. (“DIRTT” or the “Company”) (TSX:DRT, NASDAQ:DRTT), an interior construction company that uses proprietary software to design, manufacture and install fully customizable environments, is pleased to announce the successful closing of the issue and sale of C
A portion of the net proceeds of the Offering, together with the Company’s leasing facilities and cash reserves on hand, will be used for capital expenditures, including investments in the Company’s technology innovation, with the remaining portion being used for working capital, and general corporate purposes, including continued investments in the Company's sales and marketing functions.
The Debentures were offered in Canada (excluding Quebec) pursuant to a short form prospectus under Canadian law and in the United States pursuant to a “shelf” registration statement on Form S-3 (File No. 333-251660) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 23, 2020, and declared effective by the SEC on January 6, 2021, and in certain other jurisdictions as were agreed by the Underwriters and the Company. Offers, solicitations and sales of the Debentures or common shares of DIRTT are made only by means of the prospectus supplement to the “shelf” registration statement on Form S-3 in the United States and the short form prospectus in Canada (excluding Quebec). The U.S. prospectus supplement and Canadian short form prospectus relating to, and describing the terms of, the Offering are filed with and available on the SEC’s website at www.sec.gov and SEDAR at sedar.com, as applicable. Electronic copies of the U.S. prospectus supplement and Canadian short form prospectus, may also be obtained, by contacting National Bank Financial Inc. at 130 King Street West, Suite 3200, Toronto, ON M5X 1J9, by telephone at (416)-869-6534 or e-mail at ECM-Origination@nbc.ca.
The Debentures will be listed on the Toronto Stock Exchange under the symbol “DRT.DB”.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
ABOUT DIRTT
DIRTT is a building process powered by technology. The Company uses its proprietary ICE® software to design, manufacture and install fully customized interior environments. The technology drives DIRTT’s advanced manufacturing and provides certainty on cost, schedule and the final result. Complete interior spaces are constructed faster, cleaner and more sustainably. DIRTT has manufacturing facilities in Phoenix, Savannah and Calgary. The Company works with over 75 partners throughout North America. DIRTT trades on the Nasdaq under the symbol “DRTT” and on the Toronto Stock Exchange under the symbol “DRT.” For more information, visit dirtt.com/investors.
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements about the Offering and the proposed use of proceeds. In some cases forward-looking information can be identified by such terms as "will" and "expected". Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company 's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. The Company's estimates, beliefs and assumptions, which may prove to be incorrect. The risks and uncertainties that may affect forward-looking information include, but are not limited to, market conditions, the effect of COVID-19 on the Company's operations, business and financial results, and other factors discussed under "Risks Factors" in the Company’s management's discussion and analysis for the three and nine months ended September 30, 2020 and in the Company's Annual Report on Form 10-K dated February 25, 2020, both of which are available on SEDAR (www.sedar.com) and on the SEC’s website (www.sec.gov). The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.
FAQ
What is the recent offering made by DIRTT (DRTT)?
How will DIRTT use the proceeds from the debentures?
What is the total amount available from DIRTT's debenture offering including the over-allotment option?
Where will the new debentures be listed?
Who underwrote the debenture offering for DIRTT?
