WINNIPEG, Manitoba, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Exchange Income Corporation (TSX:EIF) (“EIC” or the “Corporation”) is pleased to announce that it has entered into an agreement to sell, on a bought deal basis, 2,054,000 common shares (the “Shares”) from treasury to a syndicate of underwriters (the “Underwriters”) co-led by National Bank Financial Inc. and CIBC Capital Markets. The Shares will be offered at a price of $48.70 per Share (the “Offering Price”), for gross proceeds to the Corporation of approximately $100,029,800 (the “Offering”).
Earlier this year the Corporation closed on its largest acquisition to date, and we are examining multiple accretive acquisition opportunities. Accordingly, the Corporation wishes to be able to move quickly to take advantage of these opportunities should the situation warrant. As such, the net proceeds of the Offering will initially be utilized to pay down funded debt, until required for future acquisitions or growth opportunities.
The Corporation has also granted the Underwriters an option to purchase up to an additional 308,100 Shares, representing 15% of the size of the Offering (the “Over-Allotment Option”), on the same terms and conditions, exercisable at anytime, in whole or in part, up to 30 days after the closing of the Offering. If the Over-Allotment Option is exercised in full, the Corporation will receive additional gross proceeds of $15,004,470, for aggregate gross proceeds from the Offering of $115,034,270.
"The successful completion of the Offering will further strengthen our balance sheet, affording us with maximum financial flexibility to continue pursuing our strategic ambitions and strong pipeline of acquisition opportunities,” said Mike Pyle, CEO of Exchange Income Corporation. "The acquisitions we made recently have performed extremely well, while making solid contributions to our earnings already.”
Closing of the Offering is expected to occur on or about September 2, 2022. The Offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange of the listing of the Shares, and will be offered in each of the provinces of Canada by way of a short form prospectus.
The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a United States person, except pursuant to applicable exemptions from the registration requirements.