ADF GROUP INC. (TSX: DRX) announced the closing of the previously announced "bought deal" offering of 2,000,000 subordinate voting shares at a price of $6.50 per share for net proceeds to the Corporation of $9,262,500.
The syndicate of underwriters was led by GMP Securities L.P. and included Blackmont Capital Inc., Northern Securities Inc. and Laurentian Bank Securities Inc. The offering consisted of the issuance and sale by the Corporation of 1,500,000 Subordinate Voting Shares and the sale by Groupe JPMP Inc. an entity directly and indirectly controlled by Jean, Pierre and Marise Paschini, of 500,000 Subordinate Voting Shares.
The Corporation intends to use up to $8,500,000 of the net proceeds to acquire new automated equipments for its fabrication plant in order to perform contracts recently awarded and the remaining portion for general corporate purposes.
After giving effect to the secondary offering, JPMP continues to hold 500,000 issued and outstanding Subordinate Voting Shares, which represent 2.33% of all the issued and outstanding Subordinate Voting Shares.
Jean, Pierre and Marise Paschini also continue to indirectly hold all of the 14,343,107 issued and outstanding Multiple Voting Shares of the Corporation, which represent 85% of all the issued and outstanding shares. JPMP currently has no intention to sell additional securities of ADF in the near future.
ADF is a North American leader in the design, engineering, fabrication and selective installation of complex steel superstructures, as well as in architectural metal work. ADF is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. -- www.cnxmarketlink.com
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