Rogers Sugar Announces a $110 Million Equity Offering to Fund a Portion of its Sugar Capacity Expansion Project
Summary
(FSTQ), the largest development capital investment network in Qu\xe9bec, will be a cornerstone investor in the Equity Offerings, agreeing to purchase approximately $50 million of Common Shares in a concurrent private placement. The closing of the Concurrent Private Placements is subject to a number of conditions, including the concurrent closing of the Public Offering and the receipt of all regulatory approvals, including the approval of the TSX.The Company intends to use the net proceeds of the Equity Offerings to finance a portion of the Expansion Project which was announced on August 14, 2023 and is further described above.In the event that all or part of the Over-Allotment Option and the Additional Subscription Option are exercised, the additional net proceeds received from the exercise of such options will be used for working capital purposes.In addition to the subscription by Belkorp of Private Placement Shares, certain other insiders of the Company, namely Mike Walton, Don Jewell, Jean-S\xe9bastien Couillard, Mike Heskin, Rod Kirwan and Louis Turenne will subscribe for a total of 77,220 Common Shares in the Public Offering. A material change report in respect of these related party transactions could not be filed earlier than 21 days prior to the closing of the Equity Offerings due to the fact that the Equity Offerings were launched on the date hereof and the terms of the participation of these related parties was confirmed concurrently, and the Equity Offerings are expected to be closing on or about March 4, 2024.All statements, other than statements of historical fact, contained in this press release including, but not limited to those relating to the Equity Offerings, the expected use of proceeds, the Expansion Project, its estimated budget and the anticipated benefits resulting therefrom, the trends in the North American sugar market, the anticipated closing date of the Equity Offerings and the receiving of all necessary regulatory approvals, constitute forward-looking information or forward-looking statements within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the time of this press release.Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain important estimates or assumptions by the Company in making forward-looking statements include, but are not limited to, the successful closing of the Equity Offerings, and all requisite regulatory and stock exchange approvals being obtained. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.Rogers Sugar is a corporation established under the laws of Canada.