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Archive 2004NovAtel Announces Proposed Canadian Public Offering and U.S. Private Placement of Common Shares
(Calgary, Alberta, Canada, April 6, 2004) - NovAtel Inc. (Nasdaq:NGPS) announced today that it has filed a preliminary prospectus in each of the provinces of Canada to offer $50,000,000 of Common Shares in a public offering in Canada and a private placement in the United States. It is anticipated that one-half of the Common Shares (the “Treasury Offering”) will be offered by the Company and one-half of the Common Shares (the “Secondary Offering”) will be offered by CMC Electronics Inc. (“CMC Electronics”), the selling shareholder. It is expected that CMC Electronics will continue to be the single largest shareholder of the Company following the completion of the offering. CIBC World Markets Inc. and Scotia Capital Inc. will act as co-lead underwriters for the offering. The final terms of the offering will be determined at the time of pricing and closing is expected to occur on or about the end of May, 2004. The net proceeds of the Treasury Offering will be used primarily for acquisitions of, or investments in, new businesses, technologies, product lines and strategic partnerships and, in addition, a portion thereof may be used for general corporate purposes and working capital. The Company has no present agreements, arrangements or commitments with respect to the use of the net proceeds from the Treasury Offering. The Company will not receive any of the net proceeds relating to the Common Shares sold by CMC Electronics in the Secondary Offering. In addition, the Company and CMC Electronics have entered into a strategic co-operation agreement pursuant to which the Company will supply global positioning products and technologies to CMC Electronics for certain certified avionics markets and certain certified ground-based augmentation systems. CMC Electronics is one of the world’s largest suppliers of certified GPS products into the commercial aviation market. NovAtel Inc. is a leading provider of high-precision positioning components and sub-systems used in a variety of commercial applications principally in the aviation, geomatics (surveying and mapping), mining, precision agriculture, marine and defence industries. CMC Electronics Inc. designs and produces leading technology electronics products for the aviation, infrared sensing, global positioning and space electronics markets. Its principal locations are in Montreal, Ottawa, Cincinnati and Chicago. CMC Electronics Inc. is controlled by ONCAP L.P., a Cdn.$400 million private equity fund established by Onex Corporation and a number of leading Canadian financial institutions. This press release is not an offer of securities for sale in the United States. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons or persons within the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering sold would be unlawful.
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