Stack Capital Group closes $35 million financing through dual offerings

Stack Capital Group Inc. (TSX: STCK) completed a private placement financing totaling $35 million in gross proceeds through two concurrent offerings, the company announced.

The financing consisted of a $20 million "best efforts" private placement and a $15 million concurrent non-brokered private placement. The offerings were co-led by Canaccord Genuity Corp., Raymond James Ltd., RBC Capital Markets and TD Securities Inc., along with a syndicate of other agents.

Under the combined offerings, Stack Capital issued 2,545,454 units at $13.75 per unit. Each unit includes one common share and one-quarter of a common share purchase warrant. The warrants allow holders to purchase additional common shares at $17.00 each within 24 months of closing.

The company received approval from the Toronto Stock Exchange for listing the unit shares, warrants and warrant shares, subject to final approval. Securities from both offerings are immediately tradeable under Canadian securities legislation.

Stack Capital paid agents a cash fee equal to 5% of gross proceeds raised. Company insiders purchased 9,162 units under the offering, constituting a related party transaction under securities regulations.

The net proceeds will be used for investments according to the company's investment principles and general corporate purposes, according to the press release.

Stack Capital Group operates as an investment holding company focused on equity, debt and other securities of growth-to-late-stage private businesses. The company trades on the TSX and provides shareholders exposure to diversified private investment portfolios.

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