Exhibit 5.1
December 1, 2021
DIRTT Environmental Solutions Ltd.
7303 – 30th Street SE
Calgary, Alberta T2C 1N6
Dear Sirs/Mesdames:
Re: | DIRTT Environmental Solutions Ltd. – Public Offering of 6.25% Convertible Unsecured Subordinated Debentures |
Introduction
We have acted as counsel in Alberta to DIRTT Environmental Solutions Ltd., an Alberta corporation (the “Company”), in connection with the issue and sale by the Company to the Underwriters (as defined below) of CDN$35,000,000 aggregate principal amount of 6.25% convertible unsecured subordinated debentures of the Company on December 1, 2021 (the “Debentures”) pursuant to an underwriting agreement (the “Underwriting Agreement”) dated November 19, 2021 between the Company and National Bank Financial Inc., as lead manager and book-runner, Craig-Hallum Capital Group LLC, Raymond James Ltd. and Paradigm Capital Inc. (collectively, the “Underwriters”). The Debentures were offered for sale pursuant to a prospectus supplement dated November 26, 2021 filed with the United States Securities and Exchange Commission (the “Commission”) pursuant to Rule 424(b)(5) under the United States Securities Act of 1933, as amended (the “Securities Act”), to the base prospectus dated January 6, 2021 included in the Registration Statement on Form S-3 (Registration No. 333-251660) under the Securities Act initially filed on December 23, 2020 with the Commission (collectively, the “Prospectus”). The Debentures were issued pursuant to the terms of a base indenture dated as of January 25, 2021 (the “Base Indenture”), as supplemented by the second supplemental indenture to the Base Indenture dated as of the date hereof (the “Second Supplemental Indenture” and the Base Indenture, as supplemented by the Second Supplemental Indenture, the “Debenture Indenture”), each entered into between the Company and Computershare Trust Company of Canada, as Canadian Trustee, and Computershare Trust Company, National Association, as U.S. Trustee. Each Debenture is convertible into common shares in the capital of the Company (the “Debenture Shares”) in accordance with the Debenture Indenture. All capitalized terms not defined in this opinion letter shall have the terms ascribed thereto in the Underwriting Agreement.
In this opinion letter, the Underwriting Agreement and the Debenture Indenture are referred to collectively as the “Documents” and individually as a “Document”.
As to various questions of fact material to our opinions that we have not verified independently, we have relied upon: (a) a certificate of status dated November 30, 2021 in respect of the Company issued pursuant to the Business Corporations Act (Alberta), on which we have relied exclusively in giving the opinion expressed in paragraph 1 below; and (b) a certificate of an officer of the Company on which we have relied as to various matters of fact expressed therein.
In addition, we have considered such questions of law, examined such other documents and conducted such investigations as we have considered necessary to enable us to express the opinions set forth herein.