IBI Group Inc. Announces Closing of Private Placement
TORONTO, ON — December 31, 2015 (Marketwired) – IBI Group Inc. (“IBI” or the “Company”) (TSX: IBG) is pleased to announce that it has completed its previously announced non-brokered private placement (the “Private Placement”), issuing 2,706,138 Common Shares of IBI (the “Common Shares”) at $2.38 per Common Share to IBI Group Investment Partnership in full satisfaction of $6,440,608 of indebtedness owing by IBI.
Following the Private Placement, IBI Group Investment Partnership and its affiliated partnerships, IBI Group Management Partnership and IBI Group Management Partnership II, the partners of which are also partners of IBI Group Investment Partnership, together hold 7,619,874 Common Shares, representing approximately 30.5% of the issued and outstanding Common Shares. In addition, IBI Group Management Partnership holds 6,282,222 Class B Units of IBI Group partnership, which are exchangeable for Common Shares. Together, these interests represent an interest of approximately 44.5% in the Corporation (on a partially diluted basis, assuming the exchange of the Class B Units for Common Shares).
The issuance of the Common Shares under the Private Placement is exempt from the prospectus requirements of applicable securities legislation. IBI Group Investment Partnership acquired the Common Shares for investment purposes, and may increase or reduce its investment in Common Shares according to market conditions or other relevant factors.
Caution Regarding Forward-Looking Information
Statements in this news release that describe the Company’s or management’s expectations, forecasts, guidance or estimates may constitute “forward-looking” statements, and such statements use words such as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. Forward-looking statements also include statements that are not historical facts. Forward-looking statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, IBI Group, or the industry in which they operate, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. 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. Forward-looking statements involve a number of risks and uncertainties, including those related to: (i) IBI’s ability to maintain profitability and manage its growth; (ii) IBI’s reliance on its key professionals; (iii) competition in the industry in which IBI operates; (iv) timely completion by IBI of projects and performance by IBI of its obligations; (v) fixed-price contracts; (vi) the general state of the economy; (vii) risk of future legal proceedings against IBI; (viii) the international operations of IBI; (ix) reduction in IBI’s backlog; (x) fluctuations in interest rates; (xi) fluctuations in currency exchange rates; (xii) upfront risk for time invested in participating in consortia bidding on large projects and projects being contracted through private finance initiatives; (xiii) limits under IBI’s insurance policies; (xiv) the Company’s reliance on distributions from its subsidiary entities and, as a result, its susceptibility to fluctuations in their performance; (xv) unpredictability and volatility of the price of the Company’s shares; (xvi) the degree to which IBI is leveraged and the effect of the covenants in IBI’s credit facilities; (xvii) the possibility that the Company may issue additional shares diluting existing shareholders’ interests; and (xviii) income tax matters. See “Risk Factors” discussed in the Company’s Annual Information Form filed with the Canadian securities regulatory authorities. New risk factors may arise from time to time and it is not possible for management of the Company to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of the Company to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release.
About IBI Group Inc.
IBI Group (TSX:IBG) is a globally integrated architecture, planning, engineering, and technology firm with over 2,200 professionals around the world. For more than 40 years, its dedicated professionals have helped clients create livable, sustainable, and advanced urban environments. IBI Group believes that cities must be designed with intelligent systems, sustainable buildings, efficient infrastructure, and a human touch.
SOURCE: IBI Group Inc.
For further information:
Stephen Taylor, CFO
IBI Group Inc.
55 St. Clair Avenue West
Toronto, ON M4V 2Y7
Bayfield Strategy, Inc.