ATS files preliminary prospectus for rights offering and annual information form
TSX: ATA
CAMBRIDGE, ON, June 26 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that it has filed a preliminary short form prospectus in connection
with a distribution to its shareholders of rights exercisable to subscribe for
common shares of the Company (the "Rights Offering"). The Rights Offering is
subject to receipt of all regulatory approvals, including the approval of the
Toronto Stock Exchange.
Rights and Subscription Price: Each common shareholder will receive one
right for each common share held on the record date. The record date, the
expiry date, the subscription price, and the number of rights required to
purchase one common share (the "Basic Subscription Privilege") will be
determined prior to the filing of a final short form prospectus. The Company
will make a further announcement with respect to these matters at the time of
the filing of the final short form prospectus.
Additional Subscription Privilege: Holders of rights who fully exercise
their rights under the Basic Subscription Right are entitled to subscribe pro
rata for additional common shares, if available, that were not subscribed for
initially, on or before the expiry date (the "Additional Subscription
Privilege").
Use of Proceeds: The Company anticipates raising gross proceeds of
approximately $110 million pursuant to the Rights Offering. The net proceeds
of the Rights Offering will be used to further expand Photowatt France's
manufacturing capacity, to procure silicon supplies, to advance Photowatt
France's research and development and for general corporate purposes at
Photowatt France, as further described in the preliminary short form
prospectus and the Company's news release dated June 20, 2007.
Dealer Managers: BMO Capital Markets and UBS Securities Canada Inc. are
dealer managers for the Rights Offering.
Standby Purchasers: The Company has entered into a standby purchase
agreement with three large ATS shareholders, Goldman Sachs Canada Inc.,
Goodwood Inc. and Mason Capital Management, LLC. These standby purchasers have
agreed to purchase all common shares that are not otherwise subscribed for
under the Basic Subscription Privilege and the Additional Subscription
Privilege, as further described in the preliminary short form prospectus and
the Company's news release dated June 20, 2007.
Annual Information Form
ATS also announced today it has filed its Annual Information Form for the
year ended March 31, 2007 on SEDAR at www.sedar.com.
About ATS
ATS Automation Tooling Systems Inc. provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's most
successful companies. Founded in 1978, ATS uses its industry-leading knowledge
and global capabilities to serve the sophisticated automation systems' needs
of multinational customers in healthcare, computer/electronics, automotive and
consumer products. It also leverages its many years of repetitive
manufacturing experience and skills to fulfill the specialized repetitive
equipment manufacturing requirements of customers. Through its solar business,
ATS participates in the growing solar energy industry and through its
precision components business it produces, in high volume, precision
components and subassemblies. ATS employs approximately 3,500 people at 24
manufacturing facilities in Canada, the United States, Europe, southeast Asia
and China. The Company's shares are traded on the Toronto Stock Exchange under
the symbol ATA. Visit the Company's website at www.atsautomation.com.
Notice to Reader
A preliminary prospectus relating to these securities has been filed with
securities commissions or similar authorities in each of the provinces of
Canada, but has not yet become final for the purpose of a distribution to the
public. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale or any acceptance
of an offer to buy these securities in any province of Canada prior to the
time a receipt for the final prospectus of other authorization is obtained
from the securities commission or similar authority in such province.
This news release is not an offer of securities for sale in the United
States. The securities to be offered in the rights offering described above
may not be offered or sold in the United States absent registration under the
United States Securities Act of 1933, as amended, or an exemption from
registration. Any public offering of securities to be made in the United
States will be made by means of a prospectus that may be obtained from ATS and
that will contain detailed information about the Company and management, as
well as financial statements. Under certain circumstances, ATS may register
the proposed offering in the United States.
Forward Looking Statement
This news release relates to ATS's Rights Offering and contains certain
statements that constitute forward-looking information within the meaning of
applicable securities laws ("forward-looking statements"). Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements
of ATS, or developments in ATS's business or in its industry, to differ
materially from the anticipated results, performance, achievements or
developments expressed or implied by such forward-looking statements.
Forward-looking statements include all disclosure regarding possible events,
conditions or results of operations that is based on assumptions about future
economic conditions and courses of action. Forward-looking statements may also
include, without limitation, any statement relating to future events,
conditions or circumstances. ATS cautions you not to place undue reliance upon
any such forward-looking statements, which speak only as of the date they are
made. Forward-looking statements relate to, among other things: filing of a
final short form prospectus in respect of the Rights Offering; determination
of terms of the Rights Offering; completion of the Rights Offering; and use of
proceeds of the Rights Offering. The risks and uncertainties that may affect
forward-looking statements include, among others; general market performance;
foreign currency and exchange risk; strength of the Canadian dollar and the
challenges this presents; performance of the market sectors that ATS serves;
problems associated with the expansion of production capability and adoption
of new production processes at Photowatt France; inability of Photowatt
Technologies to fund future research and development; inability to finalize
strategic partnerships or alliances to provide for silicon supply; political,
labour or supplier disruptions in manufacturing and supply of silicon; and
other risks detailed from time to time in ATS's filings with Canadian
provincial securities regulators. Forward-looking statements are based on
management's current plans, estimates, projections, beliefs and opinions, and
ATS does not undertake any obligation to update forward-looking statements
should assumptions related to these plans, estimates, projections, beliefs and
opinions change.
%SEDAR: 00002017E
For further information: Carl Galloway, Vice President and Treasurer; Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500