Chesswood Group Limited Announces $28 Million Underwritten Public Offering and Concurrent $6 Million Private Placement Financing to Fund Transformative Acquisition

Abstract

Chesswood Group Limited ("Chesswood") (TSX:CHW) announced today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and including BMO Capital Markets, National Bank Financial Inc., TD Securities Inc. Cormark Securities Inc., Canaccord Genuity Corp. and Laurentian Bank Securities Inc. (the "Underwriters") pursuant to which Chesswood will issue, on an underwritten basis, subject to regulatory approval, 2,871,800 subscription receipts ("Subscription Receipts") at a price of $9.75 per Subscription Receipt (the "Public Offering"). Chesswood has granted the Underwriters an over-allotment option to purchase up to an additional 430,800 Subscription Receipts at the same price, exercisable in whole or in part for a period of 30 days following closing of the Public Offering, to cover over-allotments. Chesswood also announced today that it intends to proceed with a concurrent non-brokered private placement of 615,385 Subscription Receipts at the same offering price as under the Public Offering (the "Private Placement Offering" and, together with the Public Offering, the "Offerings") to certain directors, officers and other insiders.