Mr. Stephen Taylor reports

IBI GROUP INC. ANNOUNCES $35 MILLION BOUGHT DEAL FINANCING

IBI Group Inc. has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., CIBC World Markets Inc. and TD Securities Inc., pursuant to which the company will issue on a bought deal basis $35-million aggregate principal amount of convertible unsecured subordinated debentures at a price of $1,000 per principal amount of debentures. In addition, the company has granted the underwriters an overallotment option to purchase up to an additional $5.25-million aggregate principal amount of debentures at the same price, exercisable in whole or in part, at any time for a period of up to 30 days following closing of the offering to cover overallotments.

The debentures will bear interest from the date of closing at 5.5 per cent per annum, payable semi-annually in arrears on June 30 and Dec. 31 each year, commencing June 30, 2017. The debentures will have a maturity date of Dec. 31, 2021.

The net proceeds of the offering will be used to finance the partial redemption of the company's 6-per-cent convertible debentures maturing on June 30, 2018, and for general corporate purposes. Prior to redeeming the 2018 debentures, the company may use a portion of the net proceeds of the offering to repay existing indebtedness under the company's senior credit facility, which amount will then be available to be drawn, as required, to finance the partial redemption of the 2018 debentures.

The debentures will be convertible at the holder's option at any time prior to the close of business on the earlier of the maturity date and the business day immediately preceding the date specified by the company for redemption of the debentures into common shares at a conversion price of approximately $8.35 per common share, being a conversion rate of 119.7605 common shares for each $1,000 principal amount of debentures, subject to adjustment as provided in the indenture governing the debentures. The debentures will not be redeemable prior to Dec. 31, 2019. On or after Dec. 31, 2019, and prior to Dec. 31, 2020, the debentures may be redeemed in whole or in part at the option of the company on not more than 60 days and not less than 30 days prior notice at a price equal to their principal amount thereof plus accrued and unpaid interest, provided that the volume-weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days ending five trading days preceding the date on which the notice of redemption is given is not less than 125 per cent of the conversion price. On or after Dec. 31, 2020, and prior to the maturity date, the debentures may be redeemed in whole or in part at the option of the company on not more than 60 days and not less than 30 days prior notice at a price equal to their principal amount plus accrued and unpaid interest.

Closing of the offering is expected to occur on or about Sept. 15, 2016. The offering is subject to normal regulatory approvals, including approval of the TSX of the listing of the debentures and the common shares to be issued upon conversion of the debentures. The debentures will be offered in each of the provinces and territories of Canada by way of a short form prospectus, and by way of private placement in the United States to qualified institutional buyers pursuant to Rule 144A.

We seek Safe Harbor.