GreenField Financial mergers with Logistics, renamed Wheels Group
New York, Jan. 11 - Wheels Group Inc. announced that it completed a merger and a series of private placement transactions that raised a total of C$18 million.
Wheels Group, formerly called Greenfield Financial Group Inc., combined with Wheels Holdco Inc., Bluenose Holdings (Ontario) Inc. and Logistics Holdings International Inc.
Ahead of the merger, Logistics Holdings sold a C$15 million private placement of subscription receipts at a price of C$1.00 per subscription receipt. The proceeds were held in escrow pending completion of the merger. At closing, the proceeds less $5 million that was paid to some current shareholders of Wheels, were released to Wheels.
Clarus Securities Inc. and Stifel Nicolaus Canada Inc. were lead agents for this placement.
Wheels Group also carried out a C$2.3 million non-brokered and C$700,000 brokered private placement of shares at C$1.00 per share.
Proceeds of all the money available to Wheels will be used to pursue growth strategies which may include an expansion of existing service lines, new services, and/or acquisitions, and to provide working capital for marketing and general operations.
"We are very excited to have completed this transaction. It marks another milestone in the company's 24-year history," said Doug Tozer, chief executive officer of Wheels, in a news release. "Access to public financing will provide added strength for our organization to fund the expansion of our service capabilities and as well as strategic acquisitions that drive greater value for our shareholders, customers, employees, and business partners."
Wheels Group is a Toronto-based provider of third-party logistics, transportation, high value fulfillment, and warehousing services using a network of partner carriers.
| Issuer: | Logistics Holdings International Inc.
|
| Issue: | Subscription receipts
|
| Amount: | C$15 million
|
| Price: | C$1.00
|
| Warrants: | No
|
|
|
| Issuer: | Wheels Group Inc.
|
| Issue: | Common shares
|
| Amount: | C$3 million (C$2.3 million non-brokered, C$0.7 million brokered)
|
| Price: | C$1.00
|
| Warrants: | No
|
| Stock symbol: | TSX Venture: WGI
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
