Rogers Sugar Announces a $110 Million Equity Offering to Fund a Portion of its Sugar Capacity Expansion Project

$50 million public offering of Common Shares and two cornerstone investments by Fonds de solidarité des travailleurs du Québec to purchase $50 million of Common Shares and by Belkorp Industries Inc. to purchase $10 million of Common Shares by way of concurrent private placements

MONTREAL, Feb. 26, 2024 (GLOBE NEWSWIRE) -- NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Montreal (Québec), February 26, 2024 – Rogers Sugar Inc. (the “Company” or “Rogers Sugar”) (TSX: RSI) today announced the issue and sale of common shares (the “Common Shares”) for aggregate gross proceeds to the Company of approximately $110 million at an offering price of $5.18 per Common Share, the net proceeds of which will be used to fund a portion of the Eastern Canada capacity expansion project (the “Expansion Project”) undertaken by the Company’s wholly owned operating subsidiary Lantic Inc. (“Lantic”), as further described below.

The sale of Common Shares is pursuant to a bought deal public offering (the “Public Offering”) and two concurrent non-brokered private placements (the “Concurrent Private Placements” and, collectively with the Public Offering, the “Equity Offerings”).

Fonds de solidarité des travailleurs du Québec (F.T.Q.) (“FSTQ”), the largest development capital investment network in Québec, will be a cornerstone investor in the Equity Offerings, agreeing to purchase approximately $50 million of Common Shares in a concurrent private placement. In addition, longtime Rogers Sugar shareholder Belkorp Industries Inc. (“Belkorp”) has agreed to purchase approximately $10 million of Common Shares, also by way of a concurrent private placement.

The Expansion Project

“Our capacity expansion project will further position Rogers Sugar to deliver consistent, profitable growth as we benefit from the positive trends in the North American sugar market, and we thank the investors whose support is making the project a reality,” said Mike Walton, President and Chief Executive Officer of Rogers Sugar and Lantic.  

The Expansion Project will increase the production capacity of Lantic’s Montreal plant by approximately 20%, or 100,000 metric tonnes. The project includes investments in sugar refining technology and equipment, as well as in logistical infrastructure at Lantic’s Montreal sugar refinery and in the Greater Toronto Area to serve the Eastern Canada market.