TECSYS Announces Bought Deal Offering of Common Shares
MONTREAL, March 23, 2015 — TECSYS Inc. (TSX: TCS) ("TECSYS"), a recognized leader in healthcare and an innovator in supply chain software and technology, today announces that it has entered into an agreement with a syndicate of underwriters led by PI Financial Corp. and which includes Laurentian Bank Securities Inc., Industrial Alliance Securities Inc., and Beacon Securities Ltd. collectively, the "Underwriters"), to sell 561,798 common shares of the corporation (the "Shares") at a price of $8.90 per Share, to raise anticipated gross proceeds of approximately $5,000,000. The offering price represents a 7.29% discount to the 10 day volume weighted average price ending on Friday, March 20, 2015.
In addition, TECSYS has granted the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase a maximum of 84,270 additional shares (the "Additional Shares"), which is equal to 15% of the Shares sold pursuant to the Offering, at a price of $8.90 per Share. If the Over-Allotment Option is exercised in full the gross proceeds of the Offering will be approximately $5,750,000.
Concurrently, TECSYS is negotiating a secured term loan anticipated to be in principal amount of $5 million with a financial institution.
TECSYS intends to use the net proceeds of the Offering and the term loan for general corporate purposes, to fund growth and to provide for possible future acquisitions.
The closing of the Offering is expected to occur on or about April 14, 2015 and is subject to certain customary conditions and the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange. The Shares will be offered for sale to the public in all the provinces of Canada pursuant to a short form prospectus to be filed shortly with the securities regulatory authorities of such provinces.
This news release is not an offer of securities for sale in the United States and is not an offer to sell or solicitation of an offer to buy any securities of the Company, nor shall it form the basis of, or be relied upon in connection with any contract for purchase or subscription. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or an exemption from registration thereunder. These securities have not been and will not be registered under the Securities Act or the securities laws of any state and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or pursuant to an applicable exemption therefrom.
TECSYS provides transformative supply chain solutions that equip our customers to succeed in a rapidly-changing omni-channel world. TECSYS solutions are built on a true enterprise supply chain platform, and include warehouse management, distribution and transportation management, as well as complete financial management and analytics. Customers running on TECSYS' Supply Chain Platform are confident knowing they can execute, day in and day out, regardless of business fluctuations or changes in technology, they can adapt and scale to any business needs or size, and they can expand and collaborate with customers, suppliers and partners as one borderless enterprise. From demand planning to demand fulfillment, TECSYS puts power into the hands of both front line workers and back office planners, and unshackles business leaders so they can see and manage their supply chains like never before.
TECSYS is the market leader in supply chain solutions for health systems and hospitals. Over 600 mid-size and Fortune 1000 customers trust their supply chains to TECSYS in the healthcare, service parts, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.
Forward Looking Statements
The statements in this web site 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 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, 2015. These documents have been filed with the Canadian securities commissions and are available on this Web site and on SEDAR .
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