MONTREAL – Stingray is selling 4,348,000 subordinate voting shares worth $40 million to a syndicate of underwriters co-led by National Bank Financial Inc. and GMP Securities L.P.
The shares will be offered in all provinces and territories of Canada pursuant to a short form prospectus to be filed by Stingray, as well as in the United States under applicable registration statement exemptions and such other jurisdictions as may be agreed to by Stingray on a private placement basis.
The company has granted the Underwriters an over-allotment option to purchase up to that number of additional shares equal to 15% of the shares purchased pursuant to the offering, exercisable in whole or in part at any time up to 30 days after and including the closing date of the offering. The offering is expected to close on or about October 24, 2017, and is subject to the receipt of all necessary regulatory approvals.
Stingray said that it intends to use the net proceeds of the offering for working capital and general corporate purposes, including providing flexibility for future acquisitions.
"Stingray's current success is due to an acquisition strategy that has grown our activities to 156 countries and our reach to 400 million households," said Stingray president, co-founder and CEO Eric Boyko, in the statement. "Since the Company's creation in 2007, we have completed 33 acquisitions valued at $240 million. Today's announcement is in line with our stated objective of accelerating this already aggressive acquisition strategy and expanding our content catalogue, thus enabling us to, amongst others, strengthen our enviable position in the SVOD market with a current reach of 140,000 subscribers."
