CVW Sustainable Royalties arranges $25M financing

Executive Summary

• CVW Sustainable Royalties Inc. announced a $25 million brokered private placement offering of up to 32,051,000 units at 78 cents per unit.
• The offering is led by Stifel Nicolaus Canada Inc. with Paradigm Capital Inc. as co-bookrunner, and includes an over-allotment option for up to 15% additional units.
• Net proceeds are intended for future royalty transactions, diligence/closing expenses, and general corporate purposes, with an expected closing date around February 26, 2026.

Key Details

• Offering Size: Up to 32,051,000 units for expected gross proceeds of up to approximately $25.0 million.
• Issue Price: 78 cents per unit.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms:
  • Each warrant is exercisable to purchase one additional common share.
  • Exercise price: 95 cents per warrant.
  • Term: Two years from the closing date.
  • Acceleration Clause: If the VWAP exceeds $1.20 for 30 consecutive trading days (after the six-month anniversary of closing), the company may accelerate the warrant expiry to 30 calendar days after notice.
• Over-Allotment Option: Agents have an option to purchase up to 15% additional units at the offering price, exercisable up to 48 hours prior to closing.
• Use of Proceeds: Financing future royalty transactions, diligence and closing expenses related thereto, and general corporate purposes.
• Statutory Hold: Common shares and warrants are subject to a four-month-and-one-day statutory hold period under Canadian securities laws.
• Closing Date: Expected on or about February 26, 2026, subject to regulatory approvals including TSX Venture Exchange approval.
• Agents: Stifel Nicolaus Canada Inc. (Lead Agent/Co-Bookrunner) and Paradigm Capital Inc. (Syndicate Agent).

Notable Quotes

• No direct quotes from management were included in the provided text.