WINNIPEG, MANITOBA (Jan. 26, 2017)
Ag Growth International Inc. (TSX:AFN) ("AGI" or the “Company”) today announced it has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets, National Bank Financial Inc. and TD Securities Inc. (the “Underwriters”), pursuant to which AGI will issue on a “bought deal” basis, 1,100,000 common shares (“Common Shares”) at a price of $55.10 per share to raise gross proceeds of approximately $60 million (the “Offering”). AGI has also granted the Underwriters an Over-Allotment Option, exercisable in whole or in part for a period expiring 30 days following closing, to purchase up to an additional 165,000 Common Shares at the same offering price. If the Over-Allotment Option is fully exercised, the total gross proceeds to AGI will be approximately $70 million.
A preliminary short form prospectus qualifying the distribution of the Common Shares will be filed with the securities regulatory authorities in each of the provinces of Canada (other than Quebec). Closing of the Offering is expected to occur on or about February 15, 2017. The Offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.
The net proceeds of the offering will be used to repay outstanding indebtedness, to pursue potential acquisition opportunities and for working capital and general corporate purposes.
The Common Shares have not been and will not be 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 thereof. This news release shall not constitute an offer to sell, or the solicitation of any offer to buy, nor shall there be any sale of Common Shares in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.