ADENTRA Announces Closing of Bought Deal Offering of Common Shares

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LANGLEY, BC, June 12, 2024 /CNW/ - ADENTRA Inc. (TSX: ADEN) ("ADENTRA" or the "Company") is pleased to announce that it has closed its previously announced bought deal treasury offering (the "Offering") and concurrent closing of the exercise in full of the over-allotment option granted to a syndicate of underwriters, with National Bank Financial Inc. and Cormark Securities Inc. acting as co–bookrunners (collectively, the "Underwriters"). Pursuant to the Offering, the Company issued an aggregate 2,582,900 common shares (the "Shares") at a price of $38.75 (the "Offer Price") for gross proceeds of $100,087,375. The gross proceeds include 336,900 Shares issued at the same Offer Price for gross proceeds of $13,054,875 on the exercise in full of the over-allotment option granted to the Underwriters.

The Company intends to use the net proceeds of the Offering to repay bank indebtedness including under its revolving credit facility, thereby increasing the amount available to be drawn under the revolving credit facility to fund potential strategic acquisitions and for general corporate purposes.

About ADENTRA Inc.

ADENTRA is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. The Company currently operates a network of 85 facilities in the United States and Canada. ADENTRA's common shares are listed on the Toronto Stock Exchange under the symbol ADEN.

Forward-Looking Statements

Certain statements in this press release contain forward-looking information within the meaning of applicable securities laws ("forward-looking information"). Forward-looking information is generally identifiable by the use of the words "shall", "to be", "may", "will", "expect", "intends", "can", "could" and similar expressions. Forward-looking information in this press release includes statements regarding: the anticipated use of the proceeds from the offering; and the planned use of the revolving credit facility, including potential strategic acquisitions.

In connection with the forward looking information contained in this press release, we have made numerous assumptions, regarding, among other things: there are no material exchange rate fluctuations between the Canadian and U.S. dollar that will affect the Company's performance the general state of the economy does not worsen; the Company's products are not subjected to negative trade outcomes; the Company does not lose any key personnel; there is no labor shortage across multiple geographic locations; there are no decreases in the supply of, demand for, or market values of hardwood lumber or sheet goods that could harm the Company's business; the Company will not incur material losses related to credit provided to its customers; there are no natural or man-made disruptions to the Company's operations and customer service centers; no global instability or global supply chain disruptions; environmental, social and governance risks do not adversely affect the Company's reputation and shareholder, employee, customer and third party relationships; climate change does not adversely affect the Company's business and damage its reputation; the Company is able to integrate acquired businesses; there is no new competition in the Company's markets that leads to reduced revenues and profitability; the Company can comply with existing regulations and will not become subject to more stringent regulations; no material product liability claims; importation of components or other innovative products does not increase and replace products manufactured in North America; the Company's management information systems upon which its depends are not impaired; the Company is not adversely impacted by disruptive technologies; the Company's information technology systems are not compromised by cyber-attacks; and, the Company's insurance is sufficient to cover losses that may occur as a result of its operations.

The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results to differ from current expectations include, but are not limited to: such risks and uncertainties described in the Company's most recent annual information form and its management's discussion and analysis (available on SEDAR+ at www.sedarplus.com), and as a result, the Company may not achieve its growth initiatives, business objectives and strategies.

All forward-looking information in this press release are qualified in its entirety by this cautionary statement. These statements are made as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise after the date hereof. Additionally, the Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities.

SOURCE ADENTRA Inc.

Maggie MacDougall, Phone: [phone], Email: [e-mail], Website: www.adentragroup.com