DRTTF - DIRTT Announces C$30000000 Rights Offering and Standby Commitment | Benzinga
CALGARY, Alberta, Nov. 21, 2023 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. ("DIRTT" or the "Company") (TSX:DRT, OTC:DRTTF), a leader in industrialized construction, announced today that its board of directors has approved a rights offering to its common shareholders for aggregate gross proceeds of C$30,000,000 (the "Rights Offering").
Under the Rights Offering, each holder of the Company's common shares (the "Common Shares") of record at the close of business on December 12, 2023 (the "Record Date") will receive one right (a "Right") for each Common Share held. Each Right will entitle the holder to subscribe for 0.81790023 Common Shares at a subscription price (the "Subscription Price") of C$0.35 per whole Common Share, exercisable for whole Common Shares only, meaning 1.22264301 Rights will be needed to purchase one Common Share (the "Basic Subscription Privilege"). The Subscription Price represents a discount of 25% to the 5-day volume weighted average trading price of the Common Shares on the Toronto Stock Exchange (the "TSX") prior to the date hereof. The Record Date is subject to the Company receiving applicable regulatory approvals, including that of the U.S. Securities and Exchange Commission (the "SEC"). The Rights are expected to expire at 5:00 p.m. (Eastern Time) on January 5, 2024.
In accordance with applicable law, the Rights Offering will include an additional subscription privilege (the "Additional Subscription Privilege") under which eligible holders of Rights who fully exercise the Rights issued to them under their Basic Subscription Privilege will be entitled to subscribe for additional Common Shares on a pro rata basis, that are not otherwise subscribed for under the Basic Subscription Privilege, subject to certain limitations that will be set out in the rights offering notice and circular prepared in connection with the Rights Offering (the "Rights Offering Documents") and in the prospectus contained in the Company's registration statement on Form S-1 (File No. 333-275172) (as may be amended from time to time, the "Registration Statement") . The Company expects to use the proceeds of the Rights Offering for general corporate purposes, which may include investments in its business, funding potential future cash needs or operating losses, funding working capital or capital expenditure needs, or reductions to its outstanding indebtedness.
The Rights Offering will be made to all eligible holders of Common Shares as of the Record Date who are resident in Canada and in certain states in the U.S. Accordingly, and subject to the terms set out in the Rights Offering Documents and in the Registration Statement, Rights will not be delivered to, nor will they be exercisable by, persons resident outside of Canada and the U.S. or in certain U.S. states to be identified in the Registration Statement. Full details of the Rights Offering will be set out in the Rights Offering Documents, which are expected to be made available on the Company's profile on SEDAR+ at www.sedarplus.ca as soon as practicable and in the final prospectus contained in the Registration Statement, which is expected to be made available on EDGAR at www.sec.gov ...