Grosvenor closes $5.25M subscription receipt private placement

Grosvenor CPC I Inc. (TSXV: GRVA.P) announced that its wholly-owned subsidiary, 9566-8216 Québec Inc., has completed a non-brokered private placement of subscription receipts, raising aggregate gross proceeds of $5,250,000.

The offering involved 13,125,000 subscription receipts priced at $0.40 each. Proceeds are being held in escrow by TSX Trust Company pending satisfaction of conditions tied to the closing of Grosvenor's qualifying transaction. Upon satisfaction of those conditions, each subscription receipt will convert into one subsidiary share, which will then be exchanged for one post-consolidation Grosvenor share, following a 3:1 share consolidation.

Finders involved in the offering, including Palos Wealth Management Inc., an affiliate of Palos Private Capital Inc., a company controlled by two Grosvenor directors, are entitled to a cash commission of $281,220 and 503,050 non-transferrable warrants exercisable at $0.40 per share for three years following escrow release.

Certain Grosvenor directors purchased a total of 125,000 subscription receipts in the offering, constituting a related party transaction under Multilateral Instrument 61-101. The company applied exemptions from formal valuation and minority shareholder approval requirements, as the value involved does not exceed 25% of the company's market capitalization.

Net proceeds are intended to fund qualifying transaction costs, evaluation of additional small-scale hydroelectric generating asset acquisitions, capital expenditures on existing generating stations, and general working capital.

Grosvenor's annual and special shareholder meeting is scheduled for September 16, 2026, in Montreal, where shareholders will vote on matters including board elections, a proposed name change to Energen Canada Inc., a share consolidation, and the completion of the qualifying transaction, among other items.

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