OPTI Updates on Equity Offering
OPTI has provided an update on its previously announced public offering of common shares conducted through a syndicate of underwriters led by TD Securities Inc., Credit Suisse Securities (Canada), Inc. and RBC Capital Markets as joint bookrunners, together with Scotia Capital Inc., CIBC World Markets Inc., FirstEnergy Capital Corp., HSBC Securities (Canada) Inc. and National Bank Financial Inc.
After conducting a broad, overnight marketed offering that was fully subscribed, OPTI reached an agreement with its Underwriters yesterday morning to issue 88,250,000 Common Shares at a price of $1.70 per share for total gross proceeds of approximately $150 million. OPTI also agreed to grant the Underwriters a 15% over-allotment option.
As with any public issue, OPTI requires Toronto Stock Exchange ("TSX") approval in order to complete the Offering. In considering the offering yesterday, the TSX exercised its discretion to apply its private placement rules to the prospectus offering and informed OPTI that it was not prepared to approve the Offering without OPTI shareholder approval as the Offering Price, in the specific circumstances of OPTI, was at a greater than 20% discount relative to the volume weighted average price of OPTI shares for the preceding five trading days. Given the length of time required to provide proper notice and conduct a shareholders meeting, OPTI believes this requirement to be impracticable.
OPTI's shares are expected to resume trading today after the dissemination of this press release. At this time, OPTI and the Underwriters
intend to continue marketing the Offering and to re-seek approval for the Offering when the Offering meets the TSX requirements.
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