Trisura Group is fortifying its expansion efforts by securing $50 million in bought deal financing.
The agreement, entered into with a syndicate of underwriters led by BMO Capital Markets, will see the issuance of 1,520,000 common shares at an offering price of $32.90 per share, yielding gross proceeds of approximately $50 million.
Net proceeds stemming from the bought deal financing will be allocated towards general corporate purposes, primarily around driving the growth of Trisura's platform in both Canada and the US.
President and CEO David Clare said the decision to secure additional capital comes as Trisura continues to perform beyond expectations, pointing to the business’ operating profitability and growth indicated in its latest financial results.
“New capital will continue to position Trisura to support that potential in Canada and the US for the long term, as well as proactively capitalize our US Surety platform and benefit from attractive investment,” said Clare.
Trisura has also granted the underwriters the option to purchase up to an additional 15% of the issued common shares under the offering, exercisable within 30 days following the closing of the transaction. This serves to cover any potential over-allotments, a press release stated.
The offering is expected to close around August 21, 2023, subject to regulatory approvals.
Trisura’s release noted that the common shares offered in the bought deal will be issued through a prospectus supplement to be filed in various Canadian provinces and territories.
They may also extend to the US on a private placement basis, adhering to relevant exemptions from registration requirements under the Securities Act of 1933 and applicable state securities laws, in addition to certain jurisdictions outside of Canada and the US.
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