Business
AGI Announces Increase to Previously Announced Offering of Senior Subordinated Unsecured Debentures to $85 Million
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES...
About this update from Ag Growth International Inc.
[{"type":"text","content":"AGI Announces Increase to Previously Announced Offering of Senior Subordinated Unsecured Debentures to $85 Million\n\n\n\n\n NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n \n\n\n WINNIPEG, Manitoba, May 22, 2025 (GLOBE NEWSWIRE) -- Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we” or “our”) announced today that, due to strong demand, it has entered into a revised agreement with a syndicate of underwriters led by CIBC Capital Markets (the “Underwriters”) to increase the size of the previously announced offering. Under the revised agreement, AGI will issue on a “bought deal” basis, subject to regulatory approval, $85 million aggregate principal amount of senior subordinated unsecured debentures (the “Debentures”) at a price of $1,000 per Debenture (collectively, the “Offering”).\n \n\n AGI has also granted to the Underwriters an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part for a period expiring 30 days following closing of the Offering, to purchase up to an additional $12.75 million aggregate principal amount of Debentures at the same price per Debenture. If the Over-Allotment Option is fully exercised, the total gross proceeds from the Offering to AGI will be $97.75 million.\n \n\n The net proceeds of the Offering are expected to be used to repay indebtedness under the Company’s senior operating credit lines, which will then be available to be redrawn for general corporate purposes.\n \n\n A preliminary short form prospectus qualifying the distribution of the Debentures will be filed with the securities regulatory authorities in each of the provinces of Canada (other than Quebec). Closing of the Offering is expected to occur on or about June 9, 2025. The Offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.\n \n\n The Debentures will bear interest from the date of issue at 7.50% per annum, payable semi-annually in arrears on June 30 and December 31 each year, commencing December 31, 2025. The Debentures will have a maturity date of June 30, 2030.\n \n\n The Debentures will not be redeemable by the Company before June 30, 2028, except upon the ...