DIRTT Environmental Solutions Ltd. and certain shareholders complete C$18.6 million bought deal secondary offering

Date Closed: 6/17/2014

Value: C$18.6 million

On June 17, 2014, DIRTT Environmental Solutions Ltd. (DIRTT or the Company) announced the completion of its previously announced secondary offering (the Offering) of common shares of the Company (Common Shares) held by Clean Technology Fund II LP, Export Development Canada, Kayne Anderson Mezzanine Partners QP, L.P., Kayne Anderson Mezzanine Partners L.P. and KAMPO US, LP (collectively, the Selling Shareholders). An aggregate of 7,155,594 Common Shares were sold to a syndicate of underwriters led by Raymond James Ltd., at an offering price of $2.60 per Common Share for total gross proceeds to the Selling Shareholders of $18,604,544.40, which included the exercise in full of the over-allotment option granted to the underwriters.

The Selling Shareholders received net proceeds of $17,488,271.74. The Company did not receive any proceeds from the Offering. The Offering resulted in the conversion of US$5,154,927.40 of principal and accrued interest outstanding on the Company's 14% senior subordinated convertible notes, which were held by certain of the Selling Shareholders.

BLG represented Raymond James Ltd., with a team led by Gordon Raman that included Krstina Skocic.