WINNIPEG, April 19, 2017 /CNW/ – Pollard Banknote Limited (TSX:PBL) (“Pollard Banknote”) today announced that a wholly-owned subsidiary of Pollard Banknote (the “Offeror”) has formally commenced its offer (the “Offer”) to acquire all of the issued and outstanding common shares (“Shares”) of INNOVA Gaming Group Inc. (“INNOVA”) for cash consideration of $2.10 per Share (the “Offer Price”).
The Offer Price represents a significant premium of approximately 39% to the closing price of $1.51 per Share on the Toronto Stock Exchange (the “TSX”) as of March 9, 2017, the last trading day prior to Pollard Banknote’s announcement of its initial proposal to the board of directors of INNOVA (the “INNOVA Board”) to acquire all of the Shares. The Offer Price also represents an approximate 36% premium to the volume weighted average trading price of $1.54 per Share on the TSX over the 20 trading days ended March 9, 2017. The Offer Price values INNOVA at an equity value of approximately $43 million.
The Offer is subject to customary conditions, including, among other things: (i) there having been validly deposited under the Offer and not withdrawn that number of Shares representing more than 50% of the outstanding Shares, excluding those Shares beneficially owned, or over which control or direction is exercised, by Pollard Banknote or by any person acting jointly or in concert with Pollard Banknote, which is a non-waivable condition, (ii) Pollard Banknote having determined, in its sole judgment, that there does not exist and there shall not have occurred or been publicly disclosed since the date of the Offer, a material adverse effect in respect of INNOVA, and (iii) certain regulatory approvals having been obtained and/or waiting periods expired. The Offer is not subject to any due diligence or financing condition. Full details of the Offer are included in the formal offer and take-over bid circular that has been filed with securities regulatory authorities. The Offer documents are available under INNOVA’s profile on SEDAR.