HALIFAX – DHX Media it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to sell 8.67 million shares of the company.
The shares are comprised of both variable voting shares and common voting shares at a price of CDN$7.50 per share (the offering) for distribution to the public in both Canada and the U.S. In addition, DHX has granted to the underwriters an over-allotment option exercisable at any time up to 30 days after closing of the offering to acquire up to an additional 1.3 million shares. In the event that the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be approximately CDN$74.8 million.
The company said that the net proceeds from the offering will be used to repay borrowings under its term credit facility maturing July 31, 2019, fund branded content properties and associated global distribution plans, as well as to pursue additional brand opportunities and for general corporate and working capital purposes, including potential acquisitions.
Closing of the offering is currently expected to take place on or about May 2, 2016 and is subject to all necessary regulatory approvals.
