Broadcaster Magazine

DHX Media Announces Offering of Shares

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  • DHX Media Ltd. announced ┬áthat it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp., for the underwriters to purchase, on a bought deal basis, 8,667,000 shares of the Company, comprised of both variable voting shares and common voting shares (collectively, the “Shares”) at a price ofCDN$7.50 per Share 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 1,300,050 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 net proceeds from the Offering will be used to repay borrowings under the Company’s term credit facility maturing July 31, 2024, 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.

    The Shares will be offered in Canada pursuant to a prospectus supplement to the Company’s base shelf prospectus dated July 2, 2024 that will be filed in each of the provinces of Canada and will be offered in the United States pursuant to the effective shelf registration statement on Form F-10 filed with the United States Securities and Exchange Commission (“SEC”) under the multi-jurisdictional disclosure system.

    Closing of the Offering is currently expected to take place on or about May 2, 2024 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and NASDAQ.