Black Diamond closes bought deal equity financing
On July 26, 2016, Black Diamond Group Limited (Black Diamond) announced that it closed its previously announced bought deal common share financing with a syndicate of underwriters led by Raymond James Ltd. and including BMO Capital Markets, Acumen Capital Finance Partners Limited, Cormark Securities Inc. and Peters & Co. Limited. At closing, a total of 5,394,180 common shares of the company were issued at a price of C$5.05 per common share, including 490,380 common shares issued in conjunction with the exercise in full of the over-allotment option granted to the underwriters, for aggregate gross proceeds of C$27,240,609. Certain directors, officers and employees of Black Diamond purchased approximately 440,000 common shares (approximately C$2.2 million) pursuant to the offering.
The net proceeds of the offering are expected to be used to partially repay outstanding indebtedness, which may be redrawn and used to fund capital expenditures, acquisitions, organic growth initiatives, working capital and for general corporate purposes.
Black Diamond rents and sells modular workforce accommodation and space rental solutions to business customers in Canada, the United States and Australia. It also provides specialized field rentals to the oil and gas industries of Canada and the United States.
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