Winnipeg’s Ag Growth Income Fund expects to raise $45 million to pay down debt and look at new acquisitions, following an agreement today to sell 1.73 million trust units to a Canadian underwriters’ syndicate.
The underwriters are led by TD Securities and include Wellington West, CIBC World Markets and PI Financial. Their agreement, worth $26 per share and expected to close by Oct. 2, includes an over-allotment option which, if exercised, gives them the option to buy another 193,000 units worth about $5 million.
Ag Growth, which owns several grain handling and storage equipment makers on the Prairies, said the funds would be used, among other things, to repay outstanding debt and “pursue potential acquisition opportunities.”
Ag Growth’s divisions include grain belt conveyor makers Batco Manufacturing of Swift Current, Sask. and Hi Roller of Sioux Falls, S.D., grain dryer maker the Edwards Group of Lethbridge, Alta., auger makers Westfield Industries of Rosenort, Man. and Wheatheart Manufacturing of Saskatoon and Calgary grain bin manufacturer Twister.