Akumin Announces Closing of US$35 Million Bought Deal Offering
News Provided by Akumin Inc. / May 2, 2018. 9:42am ET
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES/
Toronto, Ontario – May 2, 2018 – Akumin Inc. (“Akumin” or the “Company”) (TSX: AKU:U) is pleased to announce it has closed its previously announced bought deal offering of common shares by way of short form prospectus sale in each of the provinces of Canada, other than the Province of Quebec. A total of 8,750,000 common shares (the “Shares”) of the Company were sold at a price of US$4.00 per Share, for aggregate gross proceeds of US$35,000,000 (the “Offering”). The Offering was underwritten by a syndicate of underwriters led by Clarus Securities Inc. and included National Bank Financial Inc. and Scotia Capital Inc. (collectively, the “Underwriters”). The Underwriters were granted an aggregate of 525,000 broker warrants (the “Broker Warrants”) in connection with the Offering, each such Broker Warrant entitling the holder to acquire one Share of the Company at a price of US$4.00 per Share for a 24 month period following the closing of the Offering.
The Company intends to use the net proceeds from the Offering: (a) to finance the cash consideration portion of the previously disclosed acquisition by a subsidiary of the Company of certain outstanding non-controlling interests in seven of the Company’s existing Texas-based diagnostic imaging centers (the “NCI Acquisitions”), being approximately US$17.9 million; (b) to support the Company’s growth initiatives and the acquisitions it pursues from time to time; and (c) for general corporate purposes, including to fund other ordinary course expenses.
The Underwriters have the option to purchase up to an additional 1,312,500 Shares at US$4.00 per Share to cover over-allotments, if any, and for market stabilization purposes, for a period of 30 days from and including the closing date of the Offering (the “Over-Allotment Option”). The exercise of the Over-Allotment Option may result in additional gross proceeds of up to US$5,250,000. An additional 78,750 Broker Warrants will be issued to the Underwriters if the Over-Allotment Option is exercised in full, with each such Broker Warrant entitling the holder to acquire one Share of the Company at a price of US$4.00 per Share for a 24 month period following the date of exercise of the Over-Allotment Option.
The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the Shares may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Akumin in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Akumin Inc. is a leading provider of outpatient diagnostic imaging services in the United States with 74 centers located in Florida, Texas, Pennsylvania, Delaware, Illinois and Kansas. Akumin’s centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders, and therefore reducing unnecessary invasive procedures, minimizing the cost and improving outcomes for patients. Our imaging procedures include MRI, CT, positron emission tomography (PET), ultrasound, X-ray, mammography and other diagnostic or interventional radiology procedures.
For more information, visit www.akumin.com.
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. Forward-looking statements in this news release include, but are not limited to, statements with respect to the use of proceeds of the Offering and the closing of the NCI Acquisition. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, completion of the Offering and the factors described in greater detail in the “Risk Factors” section of our Annual Information Form and Management’s Discussion and Analysis, each dated March 29, 2018 and available at www.sedar.com, and the “Risk Factors” section of the final prospectus dated April 26, 2018 relating to the Offering, which is available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Akumin; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Akumin Inc.
For further information: Riadh Zine, President and Chief Executive Officer, 416-613-1391