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TORONTO, April 20, 2012 /PRNewswire/ - IBI Group Inc. (the "Company") (TSX: IBG) announced today it has closed the previously announced issuance of 2,700,000 common shares (the "Shares') on a bought deal basis at a price of $15.00 per Share to a syndicate of underwriters co-led by TD Securities Inc., CIBC World Markets Inc. and National Bank Financial Inc. for gross proceeds of $40,500,000 (the "Offering"). The Company has granted the syndicate an over-allotment option, exercisable in whole or in part at any time up to 30 days following closing, to purchase up to an additional 405,000 Shares at the same offering price.
The Company intends to use the net proceeds from the Offering for potential future acquisitions, debt reduction and general corporate purposes.
Concurrent with the Offering, the Company has completed, on a non-brokered private placement basis, the issuance of 667,000 Shares at $15.00 per Share to IBI Group Management Partnership (the "Management Partnership") in full satisfaction of $10 million of indebtedness owed by the Company to the Management Partnership.
ABOUT IBI GROUP INC. AND IBI GROUP
IBI Group Inc. is a TSX listed company, which pays monthly dividends and trades under the symbol "IBG". IBI Group Inc. holds an indirect 77% interest in IBI Group, a partnership (of a subsidiary of IBI Group Inc. and IBI Group Management Partnership) which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 23% of IBI Group is owned by IBI Group Management Partnership. On a partially diluted basis, assuming the exchange of its partnership units of IBI Group for common shares of IBI Group Inc., IBI Group Management Partnership together with affiliated entities holds a combined 42% interest in IBI Group Inc.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Statements contained in this press release which are not historical facts are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. This forward looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. A number of factors could cause actual results to differ materially from those in forward-looking statements, including general economic, market or business conditions and the factors discussed in the Company's Annual Information Form filed with the Canadian securities regulatory authorities. Undue reliance should not be placed on these statements, which only apply as of the date of this press release. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE IBI Group Inc.