Press Release

Pollard Banknote Limited Announces Closing Of Its $38.2 Million Bought Deal Financing

WINNIPEG, Manitoba, February 21, 2018 /CNW/ Pollard Banknote Limited (TSX: PBL) (“Pollard Banknote” or the “Company”), a leading lottery partner that provides instant tickets, interactive solutions, and marketing support, is pleased to announce that it has closed its previously announced bought deal public offering of common shares in the capital of the Company through a syndicate of underwriters co-led by Canaccord Genuity Corp. and Acumen Capital Finance Partners Limited, and which included Cormark Securities Inc. (collectively, the “Underwriters”). Pollard Banknote issued 2,070,000 common shares, including 270,000 shares for which the Underwriters exercised their over-allotment option in full (“Common Shares”), at a price of $18.45 per Common Share for gross proceeds to the Company of approximately $38.2 million (the “Offering”).

The Company expects to use the net proceeds from the Offering to repay indebtedness under the Company’s credit facility and repay in full the Company’s subordinated loan agreement with Pollard Equities Limited which was entered into in connection with the Company’s acquisition of INNOVA Gaming Group Inc.