GURU Organic Energy (TSX:GURU) closes $60.5 million bought deal public offering and $32 million private placement

Net proceeds from both transactions will be used for marketing and selling expenses in connection with the company’s distribution agreement with PepsiCo.

A syndicate of underwriters, led by Stifel GMP and CIBC Capital Markets, purchased 3,287,500 common shares at $16.00 per share for gross proceeds of $52.6 million. In addition, the underwriters purchased 493,125 over-allotment shares for an additional $7.89 million.

Of the total 3.2 million shares sold in the bought deal offering, 2,187,500 of the purchased shares were from executive members of GURU’s leadership team.

The private placement consisted of 1,997,594 common shares sold at $16.00 per share for gross proceeds of $31,961,504, to a group of institutional investors.

Carl Goyette, GURU’s president and CEO, commented on the closing of the transactions.

“We are delighted by the success of and interest in the offering,” he said, “and look forward to the start of our distribution relationship with PepsiCo Beverages Canada, as we pursue our expansion plans in Canada and the U.S.”

GURU has signed an exclusive, long-term national distribution agreement with PepsiCo Beverages Canada for the company’s energy drinks.

GURU Organic Energy Corp. is a wellness company that manufactures and markets organic energy drinks.

GURU Organic Energy Corp. (GURU) is up 3.53 per cent on the day, trading at $18.17 per share as of 10:49 am ET.