ATS closes $110 million rights offering
CAMBRIDGE, ON, Aug. 16 /CNW/ - ATS Automation Tooling Systems Inc. today announced it has completed its Rights Offering, raising gross proceeds of $110 million.
Under the Basic Subscription Privilege, ATS received subscriptions for 16,011,247 common shares. Under the Additional Subscription Privilege 1,678,903 common shares were purchased. The Additional Subscription Privilege was oversubscribed and no shares were issued under the standby purchase agreement.
"The successful closing of the rights offering completes another important task in our strategic goal of becoming a pure automation systems company," said Ron Jutras, ATS President and Chief Executive Officer. "The proceeds from the rights transaction will be used to fund the business plan for Photowatt France, while also supporting the spin out of Photowatt to ATS shareholders. We are pleased with the support shown by ATS shareholders for the offering and are committed to enhancing the value of our company for all ATS shareholders through strong execution of our stated business priorities."
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 industries such as 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.
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, the use of proceeds of the Rights Offering; ATS's strategic goal of becoming a pure automation systems company; ATS's plan to spin out Photowatt; and enhancement of value of ATS for shareholders. 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; the receipt of all necessary approvals and advance tax ruling relating to the spin out; the state of the capital markets; that some or all of the trends towards automation that ATS believes are attractive dissipate or do not result in increased demand for automation; risks associated with operating and servicing customers in a foreign country; that multinational companies withdraw from global manufacturing for business, political, economic or other reasons; unforeseen problems with the implementation of the ASG strategic initiatives or failure of those measures to bring about improved performance at ASG; problems associated with the expansion of production capability and adoption of new production processes at Photowatt France; inability of Photowatt 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
For further information:
Carl Galloway, Vice President and Treasurer
Gerry Beard, Vice President and Chief Financial Officer