Xebec Adsorption Inc.

Xebec Adsorption Inc. in its bought deal public offering and concurrent private placement of subscription receipts and its acquisition of Green Vision Holding B.V., the parent company of HyGear Technology and Services B.V.

Client

Xebec Adsorption Inc.

Value

$207 million

Service

Capital Markets

Date Closed

December 2020

Industry

Renewable Energy

Lead Office

Montréal

 

On December 30, 2020, Xebec Adsorption Inc. (“Xebec”) announced the closing of its upsized bought deal public offering of subscription receipts for gross proceeds of $143,751,840 and its upsized concurrent private placement of subscription receipts with Caisse de dépôt et placement du Québec for gross proceeds of $63,250,009. The subscription receipts were offered by way of a short form prospectus dated December 21, 2020 in all provinces of Canada and was completed through a syndicate of underwriters co-led by Desjardins Capital Markets and TD Securities Inc. The subscription receipts were sold at a price of $5.80 per subscription receipt.

On December 31, 2020, Xebec announced the completion of its acquisition of HyGear Technology and Services B.V. (“HyGear”), for aggregate consideration of EUR82,000,000 (approximately $127,300,000) and the assumption of EUR18,400,000 (approximately $28,600,000) in net debt. The purchase price for the acquisition was satisfied by way of a cash payment in the amount of EUR42,000,000 (approximately $65,200,000) and the issuance of 10,014,364 common shares of Xebec. Following completion of the acquisition, all previously issued subscription receipts of Xebec were automatically exchanged, on a one for one basis, with common shares of Xebec. Desjardins Capital Markets and TD Securities Inc. acted as financial advisors to Xebec in connection with the acquisition. The acquisition of HyGear is expected to position Xebec to execute and accelerate its distributed renewable gas strategy and access new markets to launch a commercially viable green hydrogen product offering.

Xebec is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Headquartered in Montréal, Québec, Canada, Xebec has several Sales and Support offices in North America and Europe, as well as two manufacturing facilities in Montréal and Shanghai. Xebec trades on the TSX under the symbol “XBC”.

HyGear was founded in 2002 in Arnhem, Netherlands, as a clean-tech company specializing in the on-site production and recovery of industrial gases. HyGear is an emerging developer, manufacturer, and supplier of technology and products for the production, recovery, purification, and mixing of industrial gases, such as hydrogen and nitrogen.

Osler, Hoskin & Harcourt LLP advised Xebec with respect to the public offering, the private placement and the acquisition with a team consisting of, with respect to the public offering and private placement, François Paradis, Jeremy Brisset, Erick Lauzière, Bhavish Beejan (Corporate and Securities), Alain Fournier, Jean-Philippe Dionne (Tax) and, with respect to the acquisition, François Paradis (Corporate), Mikulas Arendas and Samantha Dubois (Banking and Financial Services).