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MONTREAL, April. 7, 2020 /CNW/ - Tecsys Inc. (TSX:TCS) ("Tecsys" or the "Company") announced today that it has entered into an agreement with a syndicate of underwriters led by Stifel GMP (the "Lead Underwriter" and together with the syndicate of underwriters, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase on a bought deal basis 1,159,420 common shares of the Company (the "Common Shares") at a price of $17.25 per Common Share (the "Offering Price") for gross proceeds of approximately $20,000,000 (the "Offering").
The Underwriters have also been granted an option (the "Over-Allotment Option"), exercisable in whole or in part and from time to time, at any time until 30 days after the closing date of the Offering, to purchase from the Company up to an additional 173,913 Common Shares at the Offering Price for additional gross proceeds of up to $3,000,000 to the Company. If the Over-Allotment Option is exercised by the Underwriters in full, aggregate gross proceeds of the Offering (including the Over-Allotment Option) will be approximately $23,000,000.
The Common Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada pursuant to National Instrument 44-101 - Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes.
"This financing will support our profitable growth as we execute on our robust and growing backlog, which includes new projects which are being created and driven by the COVID-19 pandemic, supplying our healthcare and e-commerce clients." Peter Brereton, President and CEO of Tecsys.
The Offering is expected to close on or about April 28, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
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 securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.
The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to the timing and closing of the Offering, future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with Tecsys Inc.'s business can be found in the MD&A section of the Company's annual report and annual information form for the fiscal year ended April 30th, 2019. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Neither the Toronto Stock Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Tecsys is a global provider of supply chain solutions that equip the borderless enterprise for growth. Organizations thrive when they have the software, technology and expertise to drive operational greatness and deliver on their brand promise. Spanning healthcare, retail, service parts, third-party logistics, and general wholesale high-volume distribution industries, Tecsys delivers dynamic and powerful solutions for warehouse management, distribution and transportation management, supply management at point of use, retail order management, as well as complete financial management and analytics solutions. Tecsys' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS. For more information on Tecsys, visit www.tecsys.com.
SOURCE Tecsys Inc.
For further information: Public Relations: Adam Polka [email protected]; Solutions and General Info: [email protected]; Investor Relations: [email protected], (514) 866-5800; By phone: (514) 866-0001 or (800) 922-8649