IBI Group Inc.

IBI Group Inc.

March 29, 2012 16:34 ET

IBI Announces $41 Million Bought Deal Financing

TORONTO, ONTARIO--(Marketwire - March 29, 2012) -


IBI Group Inc. (the "Company") (TSX:IBG) announced today that it has entered into an agreement to sell 2,700,000 common shares (the "Shares") on a bought deal basis at a price of $15.00 per Share to a syndicate of underwriters co-led by TD Securities Inc., CIBC and National Bank Financial Inc. for gross proceeds of $40,500,000 (the "Offering"). In addition, the Company has granted the syndicate an over-allotment option, exercisable in whole or in part at any time up to 30 days following closing, to purchase up to an additional 405,000 Shares which, if exercised in full, would increase the gross Offering size to $46,575,000.

Concurrent with the Offering, the Company has agreed to issue, on a non-brokered private placement basis, approximately 667,000 Shares at $15.00 per Share (the "Concurrent Non-Brokered Private Placement") to IBI Group Management Partnership (the "Management Partnership") in full satisfaction of $10 million of indebtedness owed by the Company to the Management Partnership. Shares being issued under the Concurrent Non-Brokered Private Placement will not be freely-tradable until the expiry of a four month hold period which shall commence on closing.

The net proceeds from the Offering will be used for potential future acquisitions, debt reduction and general corporate purposes.

The Offering is scheduled to close on or about April 20, 2012, and is subject to regulatory approval.

This press release is not an offer of securities for sale in the United States. The Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may 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 U.S. person, except pursuant to an exemption from the registration requirements of that Act.


IBI Group Inc. is a TSX listed company, which pays monthly dividends and trades under the symbol "IBG". IBI Group Inc. holds an indirect 72% interest in IBI Group, a partnership (of a subsidiary of IBI Group Inc. and IBI Group Management Partnership) which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 28% of IBI Group is owned by IBI Group Management Partnership. On a partially diluted basis, assuming the exchange of its partnership units of IBI Group for common shares of IBI Group Inc., IBI Group Management Partnership together with affiliated entities holds a combined 46% interest in IBI Group Inc.


Statements contained in this press release which are not historical facts are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. This forward looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. A number of factors could cause actual results to differ materially from those in forward-looking statements, including general economic, market or business conditions and the factors discussed in the Company's Annual Information Form filed with the Canadian securities regulatory authorities. Undue reliance should not be placed on these statements, which only apply as of the date of this press release. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • IBI Group Inc.
    Tony Long
    230 Richmond Street West, 5th Floor
    Toronto, ON M5V 1V6
    Tel: 416-596-1930
    Fax: 416-596-8024