Stack Capital Group raises $31.25 million in private placement

Stack Capital Group Inc. (TSX: STCK) closed a private placement that raised $31.25 million in gross proceeds, the company announced. The offering was increased from an initial target of $21.25 million.

The placement involved issuing 1,666,668 units at $18.75 per unit. Each unit consists of one common share and one-quarter of a share purchase warrant. The warrants allow holders to buy additional shares at $23.00 each within 24 months of the March 31, 2026 closing date of a related offering.

Combined with a previous placement that closed March 31, Stack Capital issued a total of 2,133,334 units for aggregate gross proceeds of $40 million.

Canaccord Genuity Corp. led the syndicate of underwriters, which included Raymond James Ltd., TD Securities Inc., RBC Capital Markets, and other firms. The agents received a 5% cash fee on gross proceeds, excluding certain investors.

Company management subscribed for approximately $1 million of the units. Company insiders purchased 53,300 units in total.

Stack Capital obtained conditional approval from the Toronto Stock Exchange to list the shares and warrants from the placement. Securities sold to Canadian investors are subject to a four-month hold period, while those sold to U.S. investors under available exemptions are immediately tradeable under Canadian law.

The company plans to use proceeds for investments according to its investment principles and general corporate purposes. Stack Capital is an investment holding company focused on equity and debt securities of growth-stage private businesses.

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