CRH Medical Closes Bought Deal Financing for Gross Proceeds of C$27,370,000
VANCOUVER, BRITISH COLUMBIA — (Marketwired – March 25, 2015) – CRH Medical Corporation (TSX: CRH) (“CRH” or the “Company”) is pleased to announce that it has closed its previously announced bought deal equity offering (the “Offering”) of 7,000,000 common shares (the “Common Shares”) of the Company at a price of C$3.40 per Common Share (the “Offering Price”). The Underwriters (as defined below) were granted an over-allotment option to purchase an additional 1,050,000 Common Shares at the Offering Price, which was exercised in full, for aggregate gross proceeds of C$27,370,000 before deducting applicable commissions and expenses.
The Offering was conducted through a syndicate of underwriters led by Clarus Securities Inc., and including Bloom Burton & Co. Limited, Acumen Capital Finance Partners Limited and Beacon Securities Limited (collectively, the “Underwriters”).
The Company intends to use the net proceeds from the Offering to reduce corporate indebtedness, fund future acquisitions, as well as for working capital and general corporate purposes. In connection therewith, CRH will use approximately C$9,971,732 of the net proceeds to reduce the principal indebtedness under the Company’s US$30 million senior credit facility with Knight Therapeutics Inc. dated December 1, 2014.
The Common Shares were offered in the provinces of Ontario, Alberta, Manitoba and British Columbia by short form prospectus, and in those jurisdictions outside of Canada agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.
About CRH Medical Corporation
CRH Medical Corporation is a North American company focused on providing physicians with innovative products and services for the treatment of gastrointestinal diseases. The Company’s product distribution strategy focuses on physician education, patient outcomes, and patient awareness. The Company’s first product, the CRH O’Regan System, is a single use, disposable, hemorrhoid banding technology that is safe and highly effective in treating hemorrhoid grades I – IV. CRH distributes the CRH O’Regan System, treatment protocols, operational and marketing expertise as a complete, turnkey package directly to physicians, allowing CRH to create meaningful relationships with the physicians it serves. CRH recently acquired a full service gastroenterology anesthesia company, Gastroenterology Anesthesia Associates, LLC (“GAA”), which provides anesthesia services for patients undergoing endoscopies and colonoscopies. Performing these procedures under anesthetic makes these procedures more comfortable for patients and allows gastroenterologists to perform more procedures. CRH expects to leverage the capabilities it acquired through GAA to consolidate the highly fragmented gastroenterology anesthesia provider business. The Company’s goal is to establish CRH as the premier provider of innovative products and essential services to gastroenterologists throughout the United States. The common shares of CRH trade on the Toronto Stock Exchange as ticker ‘CRH’. For more information visit our website at http://investors.crhsystem.com/.
Additional information relating to the Company is available on SEDAR at www.sedar.com.
For Further Information Please Contact:
CRH Medical Corporation
+1 (604) 633-1440 x 1008