VANCOUVER - CanWel Building Materials Group Ltd. (TSX:CWX) completed its private placement of $57.5 million in investment vehicles, to fund the acquisition of Honsador, a Hawaii-based building materials seller.
The deal underwritten by a syndicate of underwriters led by GMP Securities L.P., and including National Bank Financial Inc., Canaccord Genuity Corp., Raymond James Ltd., Cormark Securities Inc. and Haywood Securities Inc. Proceeds raised under the Private Placement are inclusive of an additional $7,502,625 raised in connection with the exercise in full by the Underwriters of their option to arrange for the purchase of an additional 1,282,500 Subscription Receipts. Certain members of management, directors and other insiders of the Company subscribed for 960,419 Subscription Receipts for gross proceeds of $5,618,451.
Honsador Lumber started its business in 1935 as a millwork and sash and door company on the island of Oahu as Honolulu Sash and Door. Over the years the Company evolved out of a small millwork and sash business and into Hawaii’s largest lumber supplier. Honsador added finish products such as cabinetry from China and U.S., doors and windows and targets general contractors and owner builders and military accounts.
Honsador has grown to 7 locations around the Hawaiian Islands, as well as Portland, Oregon where experts in lumber and plywood procurement buy and feed the branches.
The Subscription Receipts were sold in Canada on a private placement basis pursuant to "accredited investor" exemptions under National Instrument 45-106 - Prospectus Exemptions, and have not been, nor will they be, registered under the United States Securities Act of 1933, or for the account or benefit of U.S. persons absent registration or an applicable exemption from the registration requirements.
Founded in 1989, CanWel is headquartered in Vancouver, British Columbia and trades on the Toronto Stock Exchange under the symbol CWX and is Canada's only fully integrated national distributor in the building materials and related products sector. CanWel operates multiple treating plant and planing facilities in Canada and the United States, and operates distribution centres coast-to-coast in all major cities and strategic locations across Canada and near San Francisco and Los Angeles, California. CanWel distributes a wide range of building materials, lumber and renovation products. In addition, through its CanWel Fibre division, CanWel operates a vertically integrated forest products company based in Western Canada, operating from British Columbia to Saskatchewan, also servicing the US Pacific Northwest. CanWel owns approximately 136,000 acres of private timberlands, strategic Crown licenses and tenures, log harvesting and trucking operations, several post and pole peeling facilities and two pressure-treated specialty wood production plants and a specialty saw mill.