TransForce Inc. Completes $41.2 Million Bought-Deal Equity Financing and $8.3 Million Concurrent Private Placement



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    - Over-allotment option exercised in full by underwriters
    

    MONTREAL, Aug. 13 /CNW Telbec/ - TransForce Inc. (TSX: TFI) announced
today that it has completed its previously announced bought-deal public
offering by issuing 7,040,000 common shares, at a price of $5.85 per share,
for gross proceeds to TransForce of $41,184,000.
    The 7,040,000 common shares were sold to a syndicate of underwriters
co-led by National Bank Financial Inc. and Scotia Capital Inc., acting as
joint book-runners, and including BMO Capital Markets, RBC Dominion Securities
Inc. and Cormark Securities Inc. The 7,040,000 shares sold today included
640,000 shares issued by TransForce upon the exercise in full by the
underwriters of an over-allotment option, solely to cover over-allotments and
for market stabilization purposes.
    TransForce also announced today that it has completed its previously
announced private placement with Jolina Capital Inc., its principal
shareholder, pursuant to which Jolina purchased, concurrent with the closing
of the bought-deal offering, a further 1,423,840 common shares from TransForce
in order to maintain its ownership level of the outstanding shares of
TransForce of approximately 16.82%. Jolina purchased the shares at the
bought-deal offering price of $5.85 per share, for proceeds to TransForce of
$8,329,464.
    The net proceeds of the offering and concurrent private placement to
Jolina will be used by TransForce to reduce indebtedness and for general
corporate purposes.
    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any jurisdiction. The shares
offered have not been and will not be registered under the U.S. Securities Act
of 1933 or state securities laws. Accordingly, the shares may not be offered
or sold to U.S. persons except pursuant to applicable exemptions from
registration.

    Profile

    TransForce Inc. (www.transforce.ca) is the leader in Canada's
transportation and logistics industry. Headquartered in Montreal, Quebec,
TransForce creates value for shareholders through managing and investing in a
growing network of wholly-owned, operating subsidiaries. TransForce provides a
comprehensive and unique combination of capabilities, resources and
geographical coverage in both domestic and trans-border markets. Its companies
currently operate in four well-defined business segments:

    
    - Less Than Truckload;
    - Package and Courier;
    - Specialized Services, which includes its ancillary transportation
      services such as logistics, warehousing & dedicated services, fleet
      management & personnel services; oilfield & oilsand services; and waste
      management;
    - Truckload, which includes specialized truckload services.
    

    TransForce Inc. shares are listed on the Toronto Stock Exchange under the
symbol TFI.

    Forward-Looking Statements

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of TransForce. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for TransForce's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.
    %SEDAR: 00026947EF




For further information:

For further information: Investors: Alain Bédard, Chairman of the Board,
President and CEO, TransForce Inc., (514) 331-4200, abedard@transforce.ca;
Media: John Lute, Lute & Company, (416) 929-5883, jlute@luteco.com

Organization Profile

TransForce Inc.

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