PCP-backed Neighbourly closes C$120m secondary offering

Neighbourly Pharmacy, which went public this year, has closed a secondary and treasury bought deal offering, raising about C$150 million.

Neighbourly Pharmacy, which went public this year, has closed a secondary and treasury bought deal offering, raising about C$150 million. The secondary offering, which generated about C$120 million, resulted in a drop of the ownership stake held by Persistence Capital Partners to about 50 percent of issued and outstanding common shares. Neighbourly is a Toronto-based network of community pharmacies.

PRESS RELEASE

Neighbourly Announces Closing of Secondary and Treasury Bought Deal Offering

TORONTO, Oct. 25, 2021 /CNW/ – Neighbourly Pharmacy Inc. (“Neighbourly” or the “Company”) (TSX: NBLY), Canada’s largest and fastest growing network of community pharmacies, today announced the closing of its previously-announced treasury and secondary bought deal offering of common shares (the “Offering”). The Offering was led by Scotiabank and RBC Capital Markets as bookrunners, together with a syndicate comprised of BMO Capital Markets, National Bank Financial Inc., Desjardins Capital Markets, iA Private Wealth Inc. and TD Securities Inc. (collectively, the “Underwriters”).

A total of 4,864,500 of Neighbourly’s common shares were sold, including 634,500 common shares following the full exercise by the Underwriters of their over-allotment option, at a price of $30.75 per share, for gross proceeds to the Company of approximately $30 million and to selling shareholders of approximately $120 million.

Immediately following closing of the Offering, Persistence Capital Partners owns or controls, directly or indirectly, 17,213,422 of Neighbourly’s common shares, representing approximately 50.0% of the Company’s issued and outstanding common shares.

No securities regulatory authority has either approved or disapproved of the contents of this news release. Neighbourly’s common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws. Accordingly, the Company’s common shares may not be offered, sold, or delivered within the United States unless pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Neighbourly in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Neighbourly Pharmacy Inc.

Neighbourly is Canada’s largest and fastest growing network of community pharmacies. United by their patient first focus and their role as essential and trusted healthcare hubs within their communities, Neighbourly’s pharmacies strive to provide accessible healthcare with a personal touch. Since 2015, Neighbourly has expanded its diversified national footprint to include 167 locations (on a pro forma basis, after giving effect to recently announced proposed acquisitions), reinforcing the Company’s reputation as the industry’s acquirer of choice.