Vancouver (pcJ News Briefs) – CanWel Building Materials Group Ltd. (TSX: CWX) has closed previously announced bought deal offering of 6,598,470 common shares, including shares issued pursuant to the exercise in full of the over-allotment option, at $6.10 per share for gross proceeds of $40,250,667.00.
The underwriting syndicate was led by GMP Securities L.P. and included National Bank Financial Inc., Canaccord Genuity Corp., Haywood Securities Inc., Raymond James Ltd., and Cormark Securities Inc. Goodmans LLP and Wildeboer Dellelce LLP acted as legal counsel to CanWel and the underwriters respectively.
Net proceeds will be used initially to fund a reduction of the company’s revolving credit facility, which is expected to be drawn in the future to fund potential acquisitions, and for working capital and general corporate purposes.
Founded in 1989, CanWel is Canada’s only fully integrated national distributor in the building materials and related products sector. CanWel operates multiple treating plant and planing facilities in Canada and the United States, and operates distribution centres coast- to-coast in all major cities and strategic locations across Canada and near San Francisco and Los Angeles, California.