DIRTT Announces Completion of C $ 35 Million Convertible Debenture Bought Funding
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CALGARY, Alberta, 01 Dec. 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 the issuance and sale of a total principal amount of C $ 35 million of 6.25% convertible unsecured subordinated debentures (the “Debentures”). The Debentures have been offered to the public (the “Offer”) through a syndicate of underwriters (the “Underwriters”) led by National Bank Financial Inc. The Company has also granted the Underwriters an option to over-allotment allowing them to purchase up to the Aggregate Principal Amount of $ 5.25 million of the debentures under the same conditions, exercisable in whole or in part at any time until the 30the day following the closing of the Offer.
The Company intends to use a portion of the net proceeds of the Offering, together with the available cash reserves, to fund its planned capital expenditure program for 2022 of approximately US $ 7.0 million, of which approximately US $ 2.5 million related to the refresh of the DIRTT experience centers, continuous improvement of the customer relationship management system and the redesign of the company website, approximately US $ 2.5 million US dollars for software development and approximately US $ 2.0 million for manufacturing and other capital upgrades. The remaining net proceeds of the Offering are expected to be used, as a first step, to support the continued funding of the Company’s manufacturing and commercial activities as the COVID-19 pandemic recovers, and to provide additional liquidity to support the operations and growth objectives of the Company.
The debentures were offered in Canada (except Quebec) under a simplified prospectus under Canadian laws and in the United States by virtue of a prior registration statement on Form S-3 (file no. ° 333-251660) previously filed with the US Securities and Exchange Commission (the “SEC”), and in certain other jurisdictions as agreed by the Underwriters and the Company. Offers, solicitations and sales of Debentures or DIRTT common shares are made only by way of the prospectus supplement to the U.S. shelf registration statement on Form S-3 and the Simplified Prospectus in Canada (at l exclusion from Quebec). The US Prospectus Supplement and the Canadian Short Form Prospectus relating to the Offer and describing the terms thereof are filed and available on the SEC’s website at www.sec.gov and SEDAR at sedar.com, if applicable. Electronic copies of the US Prospectus Supplement and the Canadian Simplified 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 email to [email protected]
The Debentures will be listed on the Toronto Stock Exchange under the symbol “DRT.DB.A”.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be illegal. prior to registration or qualification under the securities laws of any such state or jurisdiction.
DIRTT is a construction process powered by technology. The Company uses its proprietary ICE® software to design, manufacture and install fully customized interior environments. Technology drives DIRTT’s advanced manufacturing and provides certainty over cost, schedule and end result. Complete indoor spaces are built faster, cleaner and more sustainably. DIRTT has manufacturing facilities in Phoenix, AZ, Savannah, GA, Rock Hill, SC and Calgary, AB. The Company works with distribution partners across 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.
This press release contains forward-looking information within the meaning of applicable securities laws, which reflects the Company’s current expectations regarding future events, including statements regarding the offering and proposed use of the product. In some cases, forward-looking information may be identified by terms such 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 control of the Company and which could cause actual results and events to differ materially. those disclosed or implied by such forward-looking information. The Company’s estimates, beliefs and assumptions, which may prove to be incorrect, including those relating to the Company’s use of the proceeds of the Offer. Risks and uncertainties that may affect forward-looking information include, without limitation, market conditions, the effect of COVID-19 on the operations, business and financial results of the Company, and other factors discussed under “Risk factors” in the Company’s report. management report for the three and nine month periods ended September 30, 2021 and in the company’s annual report on form 10-K for the year ended December 31, 2020, both available on SEDAR (www.sedar.com) and on the SEC website (www.sec.gov). The Company assumes no 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 is only valid as of the date of this press release.
FOR MORE INFORMATION PLEASE CONTACT
Kim MacEachern Investor Relations, DIRTT [email protected]
Source: DIRTT Environmental Solutions Ltd.