Stack Capital Group Inc. Achieves $35 Million Financing Success
Stack Capital Group Inc. Completes Significant Financing
Stack Capital Group Inc. has successfully closed a substantial financing round, raising a total of $35 million through both a best efforts private placement and a concurrent non-brokered private placement. This significant funding will enable the company to further its investment goals and enhance its presence in the market.
Overview of the Financing Details
The financing, which is referred to as the "LIFE Offering," resulted in the issuance of 1,454,545 units at a price of $13.75 per unit, bringing in gross proceeds of $20 million. In addition, a concurrent private placement allowed for the issuance of another 1,090,909 units for an additional $15 million. This joint effort showcases Stack Capital's commitment to raising the necessary capital for its investment strategies.
Investment Structure Explained
Each unit issued as part of this offering includes one common share along with a quarter of a common share purchase warrant. These warrants provide investors with the right to acquire additional shares at an exercise price of $17.00 per share for a period of 24 months following the offering. This structure not only incentivizes investment but also aligns investor interests with the company's growth objectives.
Regulatory Approvals and Compliance
Following successful completion of the offering, the company received approval from the Toronto Stock Exchange for the listing of the unit shares and warrants, further reinforcing its commitment to transparency and regulatory compliance. The units issued are immediately tradeable under Canadian securities legislation, allowing investors to react quickly to market conditions.
Utilization of Proceeds
The net proceeds from this offering will be utilized for investments that align with the company's strategic investment thesis and to bolster general corporate functions. By focusing on high-growth potential businesses, Stack Capital Group aims to increase shareholder value and provide liquidity.
Agent Fees and Insider Participation
As part of the closing process, the company compensated the agents involved in the financing with a fee amounting to 5% of the total gross proceeds raised. Additionally, certain insiders participated in the offering, purchasing a total of 9,162 units. This highlights the insiders' confidence in the company's strategy and future prospects.
Company Background
Stack Capital Group Inc. operates as an investment holding company, with a clear focus on equity, debt, and diverse securities in late-stage private enterprises. The company seeks to provide its shareholders with exposure to a variety of private investment opportunities while enabling liquidity through its listing on the Toronto Stock Exchange. By concentrating on high-growth sectors, Stack aims to achieve sustainable long-term performance.
Forward-Looking Information
As part of this financing announcement, Stack Capital Group acknowledges that certain predictions and expectations regarding the future are forward-looking statements. These projections aim to provide insight into the company's potential, subject to various risks and uncertainties that could impact actual outcomes.
Contact Information
For further details, individuals can reach Stack Capital Group directly. Brian Viveiros serves as the VP of Corporate Development and Investor Relations and can be contacted via phone at 647-280-3307.
Frequently Asked Questions
What was the total amount raised by Stack Capital Group Inc.?
Stack Capital Group Inc. raised a total of $35 million through a combination of private placements.
What does each unit consist of in the offering?
Each unit consists of one common share and one-quarter of a common share purchase warrant.
Who were the agents involved in the offering?
The offering was co-led by Canaccord Genuity Corp., Raymond James Ltd., RBC Capital Markets, and TD Securities Inc.
How will the company utilize the proceeds from the offering?
The proceeds will be used for investments in alignment with corporate objectives and for general corporate purposes.
Who is the contact for investor inquiries at Stack Capital Group?
The contact for investor inquiries is Brian Viveiros, VP of Corporate Development, who can be reached at 647-280-3307.
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