Stingray completes $140 mln IPO, may raise additional $21 mln

Stingray Digital Group Inc, a Montréal-based multi-platform music and in-store media solutions provider, has completed its previously announced initial public offering. The company raised total gross proceeds of $140 million from the offering, giving it a non-diluted market capitalization of about $296 million. It may raise a further $21 million from an over-allotment option. Of the initial amount raised, Novacap and Telesystem, which have invested in Stingray since 2007, took $57 million. A secondary private placement of $18.35 million by selling shareholders closed concurrently. Stingray’s shares will now begin trading on the Toronto Stock Exchange under the symbols “RAY.A” and “RAY.B”.


Stingray Digital Group Inc. Completes $140 Million Initial Public Offering

Montreal, June 3 2015 – Stingray Digital Group Inc. (“Stingray”) announced today that it has successfully completed an initial public offering (the “Offering”) of an aggregate of 22,400,000 subordinate voting shares and variable subordinate voting shares of Stingray (collectively, the “Offered Shares”) at a price of $6.25 per share, for total gross proceeds of $140 million. The subordinate voting shares and variable subordinate voting shares will begin trading today on the Toronto Stock Exchange under the symbols “RAY.A” and “RAY.B”, respectively.

The Offering consists of a treasury offering of 13,287,100 Offered Shares by Stingray for total gross proceeds of approximately $83 million and a secondary offering of an aggregate of 9,112,900 Offered Shares by certain Novacap technologies funds and Télésystème Ltée (collectively, the “Selling Shareholders”) for total gross proceeds of approximately $57 million to the Selling Shareholders.

A concurrent secondary private placement of $18.35 million by the Selling Shareholders and other shareholders of Stingray also closed today contemporaneously with the Offering.

Stingray intends to use the net proceeds from the Offering to repay existing indebtedness. Based on the initial public offering price, Stingray’s non-diluted market capitalization is approximately $296 million.

The Offering was made through a syndicate of underwriters co-led by National Bank Financial Inc., GMP Securities L.P. and BMO Capital Markets, and comprised of CIBC World Markets Inc., TD Securities Inc. and RBC Dominion Securities Inc. (collectively, the “Underwriters”).

Stingray has granted to the Underwriters an over-allotment option to purchase up to an additional 3,360,000 Offered Shares from Stingray at a price of $6.25 per share, for additional gross proceeds of $21 million if the option is exercised in full. The over-allotment option can be exercised for a period of 30 days from today’s closing date.

Davies Ward Phillips & Vineberg LLP acted as counsel to Stingray and Fasken Martineau DuMoulin LLP acted as counsel to the Underwriters.

No securities regulatory authority has either approved or disapproved the contents of this news release. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Stingray Digital Group Inc. in any jurisdiction in which such offer, solicitation or sale would be unlawful. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons except in compliance with the registration requirements of the 1933 Act and applicable state securities laws or pursuant to an exemption therefrom.

About Stingray
Stingray is a leading business-to-business multi-platform music and in-store media solutions provider operating on a global scale, reaching an estimated 110 million Pay-TV subscribers (or households) in 111 countries. Geared towards individuals and businesses alike, Stingray’s products include the following leading digital music and video services: Stingray Music, Stingray Concerts, Stingray Music Videos, Stingray Lite TV, Stingray Ambiance and Stingray Karaoke. Stingray also offers various business solutions, including music and digital display-based solutions through its Stingray Business division. Stingray is headquartered in Montreal and currently has over 235 employees across the world, including in Miami, London, Amsterdam and Tel Aviv. Stingray was recognized in 2013 and 2014 as a finalist in the Top 50 of Deloitte’s Technology Fast 50TM list, and figures amongst PROFIT magazine’s fastest-growing Canadian companies. For more information, please visit

Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking information includes information with respect to Stingray’s goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, and “continue”, or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray’s control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray’s prospectus dated May 11, 2015, which is available on SEDAR at Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that Stingray anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on Stingray’s business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and Stingray does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

For more information, please contact:
Mathieu Péloquin
Senior Vice-President, Marketing and Communications
Stingray Digital Group Inc.
514-664-1244, ext. 2362

Christine Boivin
514 845-7035|

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