ATS Automation Tooling Systems Inc.
TSX : ATA

December 17, 2008 07:56 ET

ATS Automation Enters Into Agreement for a $50 Million Bought Deal of Common Shares

CAMBRIDGE, ONTARIO--(Marketwire - Dec. 17, 2008) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

ATS Automation Tooling Systems Inc. ("ATS") (TSX:ATA), today announced that it has entered into a bought deal agreement with a syndicate of underwriters led by GMP Securities L.P. ("GMP"). Under the agreement, the syndicate has agreed to purchase 10,000,000 common shares ("Common Shares") at a price of $5.00 per Common Share, resulting in gross proceeds to ATS of $50,000,000. The offering is expected to close on or about January 14, 2009.

In addition, the underwriters will have the option, exercisable for a period of 30 days after the closing date, to acquire up to an aggregate of 1,500,000 additional Common Shares at the offering price to cover over-allotments, if any, for additional gross proceeds of $7,500,000.

The net proceeds of the offering will be used to pursue strategic opportunities, and for working capital and general corporate purposes.

"This opportunity was presented to us by GMP. We considered it within the context of ATS' progress to date and future plans. We concluded that this financing supports the pursuit of our business strategy and strengthens our financial flexibility in the current economic environment," said Anthony Caputo, CEO of ATS Automation.

The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals.

THE COMMON SHARES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS.

About ATS

ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions to many of the world's most successful companies. Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems needs of multinational customers in industries such as healthcare, computer/electronics, energy, automotive and consumer products. It also leverages its many years of experience and skills to fulfill the specialized automation product manufacturing requirements of customers. Through Photowatt Technologies, ATS participates in the growing solar energy industry as an integrated manufacturer of ingots, wafers, cells and modules. Photowatt-branded products and systems serve businesses, institutions and homeowners in established and emerging markets. ATS employs approximately 3,400 people at 21 manufacturing facilities in Canada, the United States, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.

Note to Readers: Forward-Looking Statements

This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ATS, or developments in ATS's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things: the finalization of a definitive underwriting agreement. The risks and uncertainties that may affect forward-looking statements include, among others: economic market conditions; the ability of the parties to conclude a definitive underwriting agreement on mutually agreeable terms; and other risks detailed from time to time in ATS's filings with Canadian provincial securities regulators. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and ATS does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

Contact Information

  • ATS Automation Tooling Systems Inc.
    Maria Perrella
    Chief Financial Officer
    (519) 653-6500
    or
    ATS Automation Tooling Systems Inc.
    Carl Galloway
    Vice President and Treasurer
    (519) 653-6500
    Website: www.atsautomation.com