TORONTO, Oct 22 (Reuters) – Canadian food and grain trader AGT Food and Ingredients said on Wednesday it plans to raise $80 million in an equity offering, with proceeds being used for expansion in the food and packaged food segments and other growth plans.
The ‘bought deal’ offering being co-led by Cormark and GMP Securities is priced at $28 a share, a five percent discount to Regina-based AGT’s closing price of $29.46 on Tuesday on the Toronto Stock Exchange.
A bought deal occurs when an underwriter, or a syndicate, buy shares from an issuer at a set price before selling them to the public.
The offering is expected to close on or around Nov. 13. If the over-allotment option is exercised in its entirety, the aggregate proceeds from the offering will be about $92 million.
