Caisse de dépôt et placement du Québec closes C$40M private placement with Stingray Digital Group Inc.

On May 23, 2018, Caisse de dépôt et placement du Québec ("CDPQ") announced that Stingray Digital Group Inc. ("Stingray") has completed the subscription receipt offering whereby CDPQ acquired 3,846,100 subscription receipts of Stingray at a price of C$10.40 per receipt, on a private placement basis, for aggregate gross proceeds of C$40 million. Additionally, if and when the over-allotment option is exercised by the underwriters, CDPQ will be entitled to purchase up to an additional 576,915 private placement subscription receipts for additional gross proceeds of up to $6 million.

The proceeds from the private placement, along with other funds, will be used to fund Stingray's proposed C$506 million acquisition of Newfoundland Capital Corporation Limited. CDPQ, which has previously made investments in Stingray, expects that this private placement will support Stingray's growth in international markets and strengthen Stingray's goal to become the independent music business leader in Canada.

CDPQ is a long-term institutional investor that manages several public and parapublic pension plans and insurance programs.

Stingray is a media and entertainment company that provides multiplatform music services and digital experiences for pay TV operators, commercial establishments, OTT providers, mobile operators, and others.

McCarthy Tétrault LLP advised CDPQ with a team led by Patrick Boucher that included Laure Fouin and Dominique Paiement.