VANCOUVER, CANADA – Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP (“Ballard” or “The Company”) announced today, (the “Equity Distribution Agreement”) with BMO Capital Markets, Raymond James Ltd. and TD Securities Inc. as Canada`s leading agents and CIBC World Markets Inc., Cormark Securities Inc., National Bank Financial Inc., and BMO Capital Markets, Raymond James Associates, Inc. and TD Securities (U.S.) as leading agents and CIBC World Markets Corp. , H.C. Wainwright – Co., LLC, Cormark Securities (USA) Limited, Lake Street Capital Markets, LLC, National Bank of Canada Financial Inc. and Roth Capital Partners (with “U.S. agents” and with Canadian agents, “agents”), which establishes a stock exchange program (the “ATM program”). The Company intends, under the ATM program, to obtain up to $250 million (or the Canadian dollar equivalent) of common shares.
Common shares are distributed to the public from time to time, at the company`s discretion, from the public treasury. All common shares sold under the ATM program are sold at the time of sale at the applicable market price when sold through the Toronto Stock Exchange (TSX) or the Nasdaq Stock Exchange (“Nasdaq”) or other existing commercial markets for common shares in Canada and the United States. The sale under the ATM program is made at the discretion of the company and the net proceeds from the sale of common shares under the ATM program are used for general purposes. As part of the equity distribution agreement, the sale of common shares is through “on the market” within the meaning of National Instrument 44-102 – plateau distributions on TSX, Nasdaq or other existing commercial markets for common shares in Canada and the United States. Ballard is not required to sell common shares as part of the equity distribution agreement. Because common shares sold under the ATM program are issued and sold at the time of sale at the prevailing market price, prices may vary from one buyer during the distribution period. The offer of common shares under the Equity Distribution Agreement ends with (a) the sale of all common shares subject to the Equity Distribution Agreement, (b) termination of the share distribution agreement by the agents or the company, as it allows, or (c) on July 12, 2022. Ballard pays agents a commission rate of up to 2.0% of the gross proceeds from each sale of common shares. to grant agents the usual rights of compensation and dues. Ballard also reimburses agents for certain costs associated with the conclusion of the equity distribution agreement. No no. The only similarity is that newly issued shares are sold on the open market.
In a line of equity, the shares are sold at prices to previously identified parties, which generally result in significant discounts at the right share price. ATMs are sold at market prices. In contrast to the typical decline (7 to 10 per cent) following the announcement of a traditional offer of consecutive shares, the average change in the share price after the announcement of an ATM is minimal (1 to 3 per cent). ATMs are used by companies in all sectors of market capitalization. Since 1999, U.S. companies have raised more than US$50 billion in a wide range of industries, large and small, through the use of ATMs.