Tantalus Systems closes $23-million offering

Executive Summary

• Tantalus Systems Holding Inc. has closed a $23.0 million bought deal public offering, issuing 4,299,275 common shares at $5.35 per share.
• The offering included the full exercise of the underwriters' overallotment option, adding approximately $3.0 million in gross proceeds.
• Net proceeds will be used for sales and marketing, strategic growth, partial repayment of a term loan, capital expenditures, R&D, and working capital.

Key Details

• Total Gross Proceeds: Approximately $23.0 million.
• Shares Issued: 4,299,275 common shares from the treasury.
• Price Per Share: $5.35.
• Overallotment Option: Fully exercised, resulting in the issuance of an additional 560,775 common shares for approximately $3.0 million in additional gross proceeds.
• Underwriters: ATB Cormark Capital Markets (lead underwriter and sole bookrunner); syndicate included TD Securities Inc., Beacon Securities Ltd., Canaccord Genuity Corp., Paradigm Capital Inc., Raymond James Ltd., and Haywood Securities Inc.
• Underwriting Fee: 6.0% of aggregate gross proceeds (reduced to 3.0% for certain purchasers on the company's president's list); no cash commission for U.S. purchasers on the president's list.
• Insider Participation: Insiders purchased approximately 57,922 common shares. This constituted a related party transaction exempt from formal valuation and minority shareholder approval requirements under MI 61-101.
• Post-Offering Share Count: 56,007,705 shares outstanding.
• Use of Proceeds: Sales and marketing, strategic growth initiatives, partial repayment of the company's term loan, capital expenditures, research and development, and working capital and general corporate expenses.
• Listing: Shares listed on the Toronto Stock Exchange.

Notable Quotes

• "Tantalus would like to thank all of our investors and the members of our banking syndicate for further strengthening our balance sheet as we continue to invest in the company's growth," said Peter Londa, president and chief executive officer of Tantalus. "We are focused on executing on our vision of delivering Unified Intelligence to utilities to accelerate their distribution grid modernization efforts. As a result of this offering, we believe Tantalus is in a stronger position than ever to deliver highly innovative and differentiated solutions to market and to continue to scale our business."