/NOT FOR DISTRIBUTION TO
UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED
STATES/
LANGLEY, BC, Dec. 7, 2021 /CNW/ - Hardwoods Distribution Inc.
(TSX: HDI) ("HDI" or the "Company") announced today
that it closed its previously announced bought deal public offering
of common shares (the "Common Shares") in the capital of the
Company through a syndicate of underwriters led by Cormark
Securities Inc. and National Bank Financial Inc., as co-lead
underwriters and joint bookrunners (collectively, the "Lead
Underwriters") and CIBC Capital Markets, Acumen Capital Finance
Partners Limited, Canaccord Genuity Corp. and BMO Capital Markets
(together, with the Lead Underwriters, the
"Underwriters").
The Company issued an aggregate of 2,326,680 Common Shares (the
"Offering"), including 303,480 Common Shares issued pursuant
to the exercise in full of an over-allotment option granted to the
Underwriters. The Common Shares were sold at a price of
$43.25 per Common Share for total
gross proceeds to HDI of $100,628,910. In connection with the Offering,
the Underwriters received a cash commission equal to 4% of the
gross proceeds from the sale of the Common Shares.
HDI issued the Common Shares to repay certain indebtedness of
the Company and for working capital and general corporate
purposes.
The Common Shares will be listed for trading on the Toronto
Stock Exchange under the symbol "HDI". The Common Shares were
qualified for distribution by way of a short form prospectus
in each of the Provinces of Canada.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction. This press release does not constitute an offer of
securities for sale in the United
States. The securities being offered have not been, nor will
they be, registered under the United States Securities Act of
1933, as amended, and such securities may not be offered or
sold within the United States
absent registration under U.S. federal and state securities
laws or an applicable exemption from such U.S. registration
requirements.
About Hardwoods Distribution Inc.
HDI is one of North America's
largest suppliers of specialty building products to fabricators,
home centers and builders servicing the new residential, repair and
remodel, and commercial construction end-markets. The Company
currently operates a network in North
America of 83 distribution facilities in the United
States and Canada.
HDI's common shares are listed on the TSX under the symbol
HDI.
Forward-Looking Statements
Certain statements in this press release contain forward-looking
information within the meaning of applicable securities laws
("forward-looking information"). Forward-looking information
is generally identifiable by the use of the words "shall", "may",
"will", "expect", "can", "could" and similar expressions.
Forward-looking information in this press release includes
statements regarding the anticipated use of the proceeds from the
Offering; and the listing of the Common Shares on the TSX.
In connection with the forward looking information contained in
this press release, we have made numerous assumptions, regarding,
among other things: there are no material exchange rate
fluctuations between the Canadian and U.S. dollar that will affect
the Company's performance; the general state of the economy will
not materially worsen; there are no decreases in the supply of,
demand for, or market values of hardwood lumber or sheet goods that
could harm the Company's business; the Company will not incur
material losses related to credit provided to its customers; its
products are not subjected to negative trade outcomes; the Company
is able to sustain its level of sales and earnings margins; the
Company is able to integrate acquired businesses; there is no new
competition in the Company's markets that leads to reduced revenues
and profitability; the Company can comply with existing regulations
and will not become subject to more stringent regulations; no
material product liability claims; importation of components or
other innovative products does not increase and replace products
manufactured in North America; the
Company's management information systems upon which it depends are
not impaired; the Company is not adversely impacted by disruptive
technologies; an outbreak or escalation of a contagious disease,
including the novel coronavirus, COVID-19 and any mutations
thereof, will not materially adversely affect the business; and,
the Company's insurance is sufficient to cover losses that may
occur as a result of its operations.
The forward-looking information is subjects to risks,
uncertainties and other factors that could cause actual results to
differ materially from historical results or results anticipated by
the forward-looking information. The factors which could cause
results to differ from current expectations include, but are not
limited to such risks and uncertainties described in the Company's
publicly filed documents (available on SEDAR at www.sedar.com).
All forward-looking information in this press release are
qualified in its entirety by this cautionary statement. These
statements are made as of the date of this press release and,
except as required by applicable law, the Company undertakes
no obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
after the date hereof. Additionally, the Company undertakes no
obligation to comment on analyses, expectations or statements made
by third parties in respect of the Company, its financial or
operating results or its securities.
SOURCE Hardwoods Distribution Inc.