On June 3, 2015, Stingray Digital Group Inc. completed the initial public offering of its subordinate voting shares and variable subordinate voting shares at a price of $6.25 per share. The shares began trading on the Toronto Stock Exchange under the symbols RAY.A and RAY.B, respectively.
The offering consisted of a treasury offering of an aggregate of 13,287,100 subordinate voting shares and variable subordinate voting shares by Stingray for total gross proceeds of approximately $83 million and a secondary offering of an aggregate of 9,112,900 subordinate voting shares and variable subordinate voting shares by certain Novacap technologies funds and Télésystème Ltée (collectively, the Selling Shareholders) for total gross proceeds of approximately $57 million to the Selling Shareholders.
A concurrent secondary private placement of $18.35 million by the Selling Shareholders and other shareholders of Stingray at the offering price also closed contemporaneously with the offering.
On June 9, 2015, an aggregate of 3,360,000 subordinate voting shares and variable subordinate voting shares were issued by Stingray at the offering price for additional gross proceeds of $21 million following the exercise in full by the underwriters of their over-allotment option, resulting in total gross proceeds of $179.35 million (including the concurrent private placement).
The offering was made through a syndicate of underwriters co-led by National Bank Financial Inc., GMP Securities L.P. and BMO Capital Markets, and also included CIBC World Markets Inc., TD Securities Inc. and RBC Dominion Securities Inc.
Stingray is a leading business-to-business multi-platform music and in-store media solutions provider operating on a global scale.
Stingray Digital Group Inc. was represented by Lloyd Perry Feldman, its Senior Vice-President, General Counsel and Corporate Secretary; Claude Laflamme, its Vice-President, Legal and Regulatory Affairs; and a team at Davies Ward Phillips & Vineberg LLP comprising Olivier Désilets, Christine Lenis and Valentina De Castris (capital markets), Brian Kujavsky and Sylvie Samson (corporate) and Marie-Emmanuelle Vaillancourt and Héléna Gagné (tax). Grant Buchanan at McCarthy Tétrault LLP acted as regulatory counsel to Stingray.
The underwriters were represented by Fasken Martineau DuMoulin LLP, with a team comprising Michel Boislard, Jean-Pierre Chamberland, Caitlin Rose and Marie-Christine Valois (capital markets), Stephen Whitehead and Yael Wexler (regulatory), Jean-Philippe Mikus and Paul Gagnon (IP) and Claude Jodoin (tax).
Télésystème Ltée was represented by Michel Cordeau, its Vice-President, Legal Services and Assistant Secretary; Novacap was represented by Bruno-Étienne Duguay, its Chief Legal Officer, and by a McMillan LLP
team of Charles Chevrette
(corporate) and Kosta Kostic (capital markets).