Pollard Banknote Limited, a leading lottery partner that provides instant tickets, iLottery solutions, charitable gaming products, and a complete array of offerings to the lottery and charitable gaming markets, is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Acumen Capital Finance Partners Limited (together, the “Underwriters”) to purchase on a bought deal basis 812,000 common shares of Pollard Banknote at a price of $36.95 per Common Share for gross proceeds to the Company of approximately $30.0 million.

The Company has granted the Underwriters an over-allotment option exercisable at any time up to 30 days following the closing of the Offering, to purchase up to an additional 121,800 Common Shares at a price per Common Share equal to the Offering Price. In the event that the over-allotment option is exercised in full, the gross proceeds of the Offering will be approximately $34.5 million.

The Company expects to use the net proceeds from the Offering to repay indebtedness under the Company’s credit facility incurred in the recent acquisitions of Compliant Gaming LLC and Next Generation Lotteries AS.

The Common Shares will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada pursuant to National Instrument 44-101 Short Form Prospectus Distributions, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

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The closing of the Offering is scheduled to occur on or about March 2, 2021, 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 the securities regulatory authorities, and the satisfaction of other customary closing conditions.

SOURCE Pollard Banknote Limited