C.A. Bancorp Inc. (TSX: BKP) closes common share offering; raises $47.85 million
TORONTO: C.A. Bancorp Inc. (the “Company”) is pleased to announce that it has closed its common share offering (the “Offering”).
Gross proceeds: At the closing, the Company issued 14,500,000 common shares at a price of $3.30 per share for total gross proceeds of $47,850,000. The agents have been granted an over-allotment option to purchase up to 2,175,000 common shares at any time during the next 30 days.
Use of proceeds: The Company intends to use the net proceeds of the Offering to: (i) make controlling or minority investments in both public and private companies that: (a) present unique growth opportunities; (b) management believes are under-valued and/or under-performing due to poor management execution or inappropriate capital structure; or (c) are undergoing a significant transition, such as a change in senior management or succession in ownership; and (ii) establish, invest in and manage new private equity funds and alternative asset investment vehicles that will generate management fees for the Company. In addition, a portion of the proceeds may also be used for working capital and general corporate purposes.
C.A. Bancorp Inc.
C.A. Bancorp Inc. is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. The Company is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.
Trading information: C.A. Bancorp Inc. common shares trade on the Toronto Stock Exchange (the “TSX”) under the symbol BKP.
Agents: The syndicate of agents, which was co-led by CIBC World Markets Inc., National Bank Financial Inc. and RBC Capital Markets, included BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Dundee Securities Corporation, Richardson Partners Financial Ltd., Wellington West Capital Inc., Blackmont Capital Inc., Desjardins Securities Inc., GMP Securities L.P., Haywood Securities Inc. and Research Capital Corporation.
The securities offered hereby have not been registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR TO BE DISSEMINATED IN THE UNITED STATES
This news release contains “forward-looking statements” relating to the Company’s intentions. Forward looking statements involve known or unknown risks, uncertainties and other factors, which may cause the actual performance or achievements of the Company to be materially different from those projected by such forward-looking statements. Among others, such factors include uncertainty with respect to the availability of investment opportunities and competition for investments.
Forward-looking statements contained herein are made as of the date hereof and are based on the opinions of management based on information available to management as of such date, and, except as may be required by applicable securities laws, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, changes to the Company’s investment plan, future events or results or otherwise.