/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ - Over-allotment option exercised in full by underwriters
MONTREAL, Aug. 13 /CNW Telbec/ - TransForce Inc. (TSX: TFI) announced today that it has completed its previously announced bought-deal public offering by issuing 7,040,000 common shares, at a price of $5.85 per share, for gross proceeds to TransForce of $41,184,000.
The 7,040,000 common shares were sold to a syndicate of underwriters co-led by National Bank Financial Inc. and Scotia Capital Inc., acting as joint book-runners, and including BMO Capital Markets, RBC Dominion Securities Inc. and Cormark Securities Inc. The 7,040,000 shares sold today included 640,000 shares issued by TransForce upon the exercise in full by the underwriters of an over-allotment option, solely to cover over-allotments and for market stabilization purposes.
TransForce also announced today that it has completed its previously announced private placement with Jolina Capital Inc., its principal shareholder, pursuant to which Jolina purchased, concurrent with the closing of the bought-deal offering, a further 1,423,840 common shares from TransForce in order to maintain its ownership level of the outstanding shares of TransForce of approximately 16.82%. Jolina purchased the shares at the bought-deal offering price of $5.85 per share, for proceeds to TransForce of $8,329,464.
The net proceeds of the offering and concurrent private placement to Jolina will be used by TransForce to reduce indebtedness and for general corporate purposes.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. The shares offered have not been and will not be registered under the U.S. Securities Act of 1933 or state securities laws. Accordingly, the shares may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.
Profile
TransForce Inc. (www.transforce.ca) is the leader in Canada's transportation and logistics industry. Headquartered in Montreal, Quebec, TransForce creates value for shareholders through managing and investing in a growing network of wholly-owned, operating subsidiaries. TransForce provides a comprehensive and unique combination of capabilities, resources and geographical coverage in both domestic and trans-border markets. Its companies currently operate in four well-defined business segments:
- Less Than Truckload; - Package and Courier; - Specialized Services, which includes its ancillary transportation services such as logistics, warehousing & dedicated services, fleet management & personnel services; oilfield & oilsand services; and waste management; - Truckload, which includes specialized truckload services.
TransForce Inc. shares are listed on the Toronto Stock Exchange under the symbol TFI.
Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
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