TerraVest Industries Secures $240 Million in Share Offering
BASE SHELF PROSPECTUS ACCESSIBLE AND PROSPECTUS SUPPLEMENT TO BE ACCESSIBLE WITHIN TWO BUSINESS DAYS ON SEDAR+.
TORONTO — TerraVest Industries Inc. (TSX:TVK) is excited to announce an agreement for a bought deal to sell 1,500,000 common shares from its treasury. This offering is underwritten by a syndicate led by National Bank Financial Markets, with Canaccord Genuity and Desjardins Capital Markets also contributing as Co-Bookrunners.
The shares will be priced at $160.30 each, which will generate approximate gross proceeds of $240,450,000 for the company, enhancing its capital for various strategic initiatives.
Additionally, the underwriters have been granted an option to purchase up to 225,000 additional shares, which could see TerraVest receive further proceeds of about $36,067,500 if exercised in full. This brings the total potential proceeds from the offering to $276,517,500.
Strengthening Financial Position
As TerraVest seeks new acquisition opportunities, the ability to sustain a strong balance sheet is essential. The funds raised will be initially dedicated to paying down existing debts and creating opportunities for corporate activities, thus preparing the company for future growth.
CEO Dustin Haw commented on the offering, stating, "Following our recent acquisitions, successfully completing this offering will enhance our balance sheet and position us well to continue supporting our current portfolio and pursuing our long-term acquisition strategy."
Details of the Offering
The shares will be available across Canada through a prospectus supplement to the company’s base shelf prospectus dated May 8, 2024. Moreover, they could be offered in the United States through a confidential offering memorandum, adhering to certain exemptions under the U.S. Securities Act.
The anticipated closing date for the offering is on or around May 23, 2025, contingent upon standard regulatory approvals, including the Toronto Stock Exchange's approval for listing the shares.
Accessing Offering Documentation
Investors and interested parties can expect the base shelf prospectus and the prospectus supplement to be easily accessible on SEDAR+, ensuring that regulatory requirements are being met regarding document availability.
Investors are encouraged to carefully review these documents, including any amendments, as they contain vital information for making informed investment decisions.
About TerraVest Industries Inc.
TerraVest is a diversified industrial company recognized for manufacturing and providing an array of goods and services across various end-markets. It is renowned as a market leader in producing home heating products, propane transport vehicles, ammonia transport vessels, energy processing equipment, and fiberglass storage tanks.
The company's focus remains on acquiring and managing market-leading businesses that will thrive with TerraVest's financial and operational backing. They are committed to fostering long-term relationships and growth opportunities in the industrial sector.
Frequently Asked Questions
What is the primary purpose of the share offering?
The offering aims to raise capital to strengthen the company's balance sheet, repay debts, and support future acquisitions.
Who are the underwriters involved in this offering?
The underwriters include National Bank Financial Markets, Canaccord Genuity, and Desjardins Capital Markets.
What are the terms of the offering?
The offering includes 1,500,000 common shares priced at $160.30 each, with an option for underwriters to purchase an additional 225,000 shares.
How will the proceeds be used?
Proceeds will initially cover debt repayment and general corporate activities, preparing TerraVest for future growth opportunities.
When is the expected closing date for the offering?
The offering is expected to close on or about May 23, 2025, pending regulatory approval.
