Stack Capital closes financings totalling $35-million

Executive Summary

• Stack Capital Group Inc. has closed its previously announced best effort private placement (LIFE offering) and a concurrent non-brokered private placement, raising a total of $35 million in gross proceeds.
• The financing was co-led by a syndicate of agents including Canaccord Genuity Corp., Raymond James Ltd., RBC Capital Markets, and TD Securities Inc.
• The company received approval from the Toronto Stock Exchange for the listing of the unit shares, warrants, and warrant shares, subject to final approval.

Key Details

• Total Gross Proceeds: $35,000,000.
• LIFE Offering Details:
  • Gross Proceeds: $20,000,000.
  • Units Issued: 1,454,545 units.
  • Price Per Unit: $13.75.
• Concurrent Non-Brokered Private Placement Details:
  • Gross Proceeds: $15,000,000.
  • Units Issued: 1,090,909 units.
  • Price Per Unit: $13.75.
• Warrant Terms:
  • Each unit consists of one common share and one-quarter of one common share purchase warrant.
  • Exercise Price: $17 per warrant share.
  • Duration: 24 months from the date of the release.
  • Adjustments: Subject to adjustment in certain events.
• Use of Proceeds: Investments in accordance with the company's investment principles and general corporate and working capital purposes.
• Agent Fees: A cash fee equal to 5.0% of the gross proceeds was paid to the agents at closing.
• Insider Participation: Insiders purchased an aggregate of 9,162 units. This was treated as a related-party transaction, but exemptions from formal valuation and minority shareholder approval under MI 61-101 were relied upon as the value did not exceed 25% of market capitalization.
• Tradability: Units and warrants from both the LIFE offering and the concurrent private placement are immediately freely tradable under applicable Canadian securities legislation.

Notable Quotes

• None provided in the text.