CPE News (12/05/2020) – BDC Capital Inc., a wholly-owned subsidiary of the Business Development Bank of Canada (BDC), has sold 3,700,000 common shares in the capital of H2O Innovation Inc. (TSX-V: HEO) at $1.78 per share by means of a block trade through the facilities of the Pure Trading Alternative Market.
Immediately prior to the transaction, BDC Capital beneficially owned or had control or direction over, directly or indirectly, 9,847,963 common shares representing 12.72% of the 77,419,477 issued and outstanding common shares of H2O Innovation, and warrants to purchase 1,309,524 common shares, representing 11,157,487 common shares (14.17%) on a partially diluted basis.
Immediately following the transaction, BDC will own 6,147,963 common shares (7.94%) or 7,457,487 common shares (9.47%) on partially diluted basis.
BDC Capital acquired initial stakes in H2O for $6 million (at $0.83 per share) as part of $13.07 million private placement.
Investissement Québec (IQ) and Caisse de dépôt et placement du Québec (CDPQ) remain as the only entities controlling 10% of H2O Innovation shares, owing 15.44% and 10.95% of the oustanding shares respectively.
Québec City based H2O Innovation designs and provides state-of-the-art, custom-built and integrated water treatment solutions based on membrane filtration technology for municipal, industrial, energy and natural resources end-users.
photo credit: H2O Innovation
News Release
BDC CAPITAL INC. SELLS SHARES OF H2O INNOVATION INC.
Montreal, Québec, December 4, 2020 — On December 4, 2020, BDC Capital Inc. (“BDC Capital”), a wholly-owned subsidiary of the Business Development Bank of Canada (“BDC”), sold 3,700,000 common shares in the capital of H2O Innovation Inc. (the “Corporation”) (TSXV: HEO) at a price of $1.78 per share (the “Transaction”). The Transaction was effected by means of a block trade through the facilities of the Pure Trading Alternative Market.
Immediately prior to the Transaction, BDC Capital beneficially owned or had control or direction over, directly or indirectly, 9,847,963 common shares of the Corporation, representing 12.72% of the 77,419,477 issued and outstanding common shares of the Corporation, and BDC beneficially owns or has control or direction over, directly or indirectly, common share purchase warrants of the Corporation (the “Warrants”), entitling BDC to purchase 1,309,524 common shares of the Corporation. Assuming the exercise of all Warrants held by BDC before the Transaction, BDC and BDC Capital would have beneficially owned or had control or direction over, directly or indirectly, 11,157,487 common shares, representing 14.17% of the Corporation’s common shares that would then be issued and outstanding.
Immediately after the Transaction, BDC beneficially owns or has control or direction over, directly or indirectly, 6,147,963 common shares of the Corporation, representing approximately 7.94% of the issued and outstanding shares of the Corporation, and BDC beneficially owns or has control or direction over, directly or indirectly, Warrants, entitling BDC to purchase 1,309,524 common shares of the Corporation. Assuming the exercise of all Warrants held by BDC, following the closing of the Transaction BDC and BDC Capital would beneficially own or have control or direction over, directly or indirectly, 7,457,487 common shares, representing 9.47% of the Corporation’s common shares that would then be issued and outstanding.
BDC Capital sold the Shares as part of its investing activities. BDC or BDC Capital may, depending on market and other conditions and subject to applicable securities regulation, change its beneficial ownership of (or control or direction over) the shares and/or other equity, debt or other securities or instruments (collectively, the “Securities”) of the Corporation, whether in the open market, by privately negotiated agreements, or otherwise. Any transaction that BDC or BDC Capital may pursue may be made at any time and from time to time without prior notice and will depend on a variety of factors, including, without limitation, the price and availability of the Corporation’s securities, subsequent developments affecting the Corporation, its business and prospects, other investments and business opportunities available to BDC or BDC Capital, general industry and economic conditions, the securities markets in general and other factors deemed relevant by BDC or BDC Capital, as the case may be.
This news release is issued under the early warning provisions of Canadian securities legislation. An early warning report relating to this transaction will be filed on SEDAR under the Corporation’s profile at www.sedar.com. To obtain a copy of such report, please contact Flavie Côté, Public Affairs, BDC, mediainfo@bdc.ca, 514-496-7146.
About BDC
BDC is the only bank devoted exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 123 business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital and flexible growth and transition capital solutions. BDC is also the first financial institution in Canada to receive B Corp certification. To find out more, visit bdc.ca.
BDC Capital Inc.
5 Place Ville-Marie, Suite 100 Montreal, Québec H3B 5E7