Jamieson Wellness plans to use the IPO proceeds for repayment of its debt portion, payment of dividend and return of capital to the preferred shareholders
SmallCapPower | July 10, 2017: Shares of Jamieson Wellness Inc. (TSX: JWEL) continued to move higher Monday, up $0.08 to $17.38 after announcing on July 7, 2017, that it completed its initial public offering of common shares of an aggregate of 19.1 million Common Shares including Treasury and a secondary offering at a price of $15.75 per share for total gross proceeds of $300.04 million with Jamieson Wellness and the Selling Shareholders receiving gross proceeds of $245.0 million and $55.1 million, respectively. Pursuant to the Offering, 15,554,755 Common Shares were issued by Jamieson Wellness pursuant to the Treasury Offering and 3,495,245 Common Shares were sold by the Selling Shareholders pursuant to the Secondary Offering. Jamieson Wellness did not receive any proceeds from the Secondary Offering. Its Common Shares began trading Friday on the Toronto Stock Exchange under the symbol ‘JWEL’, opening up 5% at $16.50.
Jamieson Wellness has been a leading manufacturer and distributor of high-quality natural health products in Canada since 1922. The Company manufactures and markets sports nutrition products and specialty supplements. Euromonitor estimated the North American Vitamin, Minerals and Supplements (VMS) and sports nutrition market to be about US$29 billion and US$8 billion, respectively, in 2016. Jamieson Wellness holds a 25% market share in the collective VMS category. Jamieson Wellness’ revenue and adjusted EBITDA has surged at a CAGR of 8.7% and 14.8%, respectively, during 2014-2016. Jamieson Wellness is banking on the shifts in consumer health trends and the aging North American population for its future growth.
Jamieson Wellness plans to use the IPO proceeds for repayment of its debt portion, payment of dividend and return of capital to the preferred shareholders. The debt and preferred stock payments could result in a profitable bottom-line in the near future as Jamieson Wellness reports that the net losses were mainly due to preferred stock accretion. Shares of Jamieson Wellness jumped as much as 14% on its first day of trading Friday, posting an intraday high of $17.95 per share.
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