Metatek-Group closes $35-million IPO

Executive Summary

• Metatek-Group Ltd. has closed its Initial Public Offering (IPO) of common shares on the Toronto Stock Exchange, raising significant capital to fund debt repayment, equipment acquisition, and general corporate purposes.
• The primary treasury offering generated C$35.0 million in gross proceeds, while a secondary offering by selling shareholders generated an additional C$5.0 million.
• The company’s shares began trading on March 25, 2026, under the symbol MTEK, with an overallotment option allowing for up to 1.2 million additional shares to be sold by existing shareholders.

Key Details

• Offering Structure:
  • Treasury Offering: 7,000,000 common shares sold by the company.
  • Secondary Offering: 1,000,000 common shares sold by existing shareholders.
  • Total Primary Shares: 8,000,000 shares.
• Pricing and Proceeds:
  • Offering Price: C$5.00 per share.
  • Gross Proceeds to Company (Treasury): Approximately C$35.0 million.
  • Gross Proceeds to Selling Shareholders (Secondary): Approximately C$5.0 million.
  • Overallotment Option: Underwriters have a 30-day option to purchase up to 1,200,000 additional shares at C$5.00 per share. If exercised, this would generate up to C$6.0 million in gross proceeds for the selling shareholders only; the company will receive no proceeds from the overallotment.
• Use of Proceeds:
  • Repayment of all amounts outstanding under the company’s credit facility.
  • Near-term milestone payments toward the purchase of two new eFTG (electromagnetic frequency transient geophysics) systems.
  • Refurbishment costs for an iFTG system.
  • Working capital and general corporate purposes.
• Underwriters:
  • Sole Bookrunner: Canaccord Genuity Corp.
  • Syndicate Members: CIBC Capital Markets, Bank of Nova Scotia, ATB Capital Markets, Roth Canada Inc., Beacon Securities Ltd., and Research Capital Corp.
• Ownership Changes (Post-Offering):
  • PillarFour Capital Fund II & Parallel Fund II: Increased holdings from 8,749,999 shares (~28.5%) to 12,888,806 shares (~26.3% of outstanding shares).
  • Dr. Mark Davies (CEO): Holdings remained constant at 8,505,982 shares, but percentage ownership decreased from ~27.7% to ~17.3% due to the dilution from the new issuance.
• Trading Information:
  • Exchange: Toronto Stock Exchange (TSX).
  • Symbol: MTEK.
  • Trading Start Date: March 25, 2026.
• Regulatory Filings:
  • Completed pursuant to a supplemented PREP prospectus dated March 18, 2026.
  • Filed with securities regulators in all Canadian provinces except Quebec.

Notable Quotes

• "This IPO comes at a timely moment, as the growing global focus on energy security, critical minerals and supply chain resilience is driving increased demand for our solutions. With this capital, we are well positioned to accelerate our next phase of growth as we expand our global airborne geoscience capabilities and advance a strong pipeline of developments," — Dr. Mark Davies, Chief Executive Officer.