COGNICASE Enters Into Agreement for a $21 Million Bought
Deal
MONTREAL, CANADA--MAY 4, 2001 - 11:05 EDT
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND
IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR DISSEMINATION IN THE UNITED STATES.
COGNICASE Inc. (NASDAQ: COGI) today announced that it has entered
into an agreement with a syndicate of underwriters to issue and
sell 2,500,000 common shares of COGNICASE at a price of $8.25 per
share. Gross proceeds of this transaction will be $20.63 million.
The Underwriters will have the option to purchase up to an
additional 1,000,000 common shares, on the same terms as the
offering, up to 48 hours prior to closing. The Company has also
granted the Underwriters an option to purchase an additional
number of common shares, equal to 15% of the offering, for
purposes of covering over-allotments and for market stabilization.
The syndicate is being led by Yorkton Securities Inc. The
transaction is subject to the receipt of all necessary regulatory
and stock exchange approvals. The offering is scheduled to close
on or about May 23, 2001.
The proceeds of the transaction will be used for working capital
and corporate development purposes.
"By strengthening our capital structure, the Company will be
better poised to pursue its strategic plan of developing its
e-solutions business and expanding in certain geographic markets.
Our results over the last two quarters are a testament to this and
we are committed to continue to grow our business", said Ronald
Brisebois, President and Chief Executive Officer of COGNICASE.
The common shares have not been and will not be registered under
U.S. securities laws or state securities laws and may not be
offered or sold in the United States or to U.S. persons except
pursuant to an exemption from such registration requirements.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sales of
these securities in any state in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.
About COGNICASE
COGNICASE is an innovative company specializing in the development
and integration of real time transactional solutions. Relying on
its results-driven approach, its software and technology and its
international Internet engineering and hosting center, COGNICASE
offers secure and scalable solutions that contribute to its
customers success in the age of the new economy. The Company is
active in several countries, including Canada, the United States,
France, Spain, Belgium, the Netherlands and Australia. |
