Toronto, Ontario--(Newsfile Corp. - July 16, 2026) - Elevate Service Group Inc. (TSXV: SERV) (FSE: Y19) ("Elevate" or the "Company") is pleased to announce the closing of its previously announced bought deal private placement of 5,264,000 common shares in the capital of the Company (each, a "Common Share") at a price of $1.90 per Common Share (the "Issue Price") for aggregate gross proceeds of approximately $10.0 million (the "Offering"). As previously announced on June 26, 2026, the Offering was upsized from $7.0 million based on strong investor demand. Beacon Securities Limited ("Beacon") acted as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters that included Canaccord Genuity Corp. and Raymond James Limited (together with Beacon, the "Underwriters").
The Company has also signed a term sheet with its Schedule I Canadian banking partner for a proposed credit facility of up to $25 million (the "Acquisition Facility") to provide committed and flexible financing for future acquisitions. The proposed terms of the Acquisition Facility are outlined below and are expected to be finalized in a definitive agreement by early August 2026. Utilization of the Acquisition Facility will remain consistent with the Company's conservative approach to senior leverage. The completed Offering and proposed Acquisition Facility significantly increase the Company's financial capacity to execute on its disciplined acquisition strategy.
Elevate intends to continue pursuing high-quality, profitable businesses with recurring customer relationships, attractive margins and platform synergy opportunities. The Company's strategy is focused on technical service businesses with experienced management teams that complement existing operations, add capabilities, and support expansion across attractive markets serving national customers.
"The strong institutional demand for this financing, together with the continued support of our banking partner, reinforces confidence in the long-term opportunity to consolidate Canada's fragmented facility services sector," said Paul Bissett, Chief Executive Officer of Elevate. "With a strengthened balance sheet and access to committed acquisition capital, we are positioned to execute on an active pipeline of opportunities while maintaining a disciplined approach to capital allocation and leverage."
"Our objective is to build an integrated national platform capable of delivering superior customer outcomes, sustainable growth and long-term shareholder value," said Romeo Di Battista Jr., Executive Chairman of Elevate. "We believe the facility services industry is entering a period where scale, technology and operating excellence will differentiate market leaders. Our strategy is to partner with exceptional business owners and provide them with access to capital, shared systems and national customer relationships to accelerate growth."
Proposed Acquisition Credit Facility
The proposed Acquisition Facility is expected to include a revolving term loan available to be drawn in multiple tranches to fund future acquisitions. Once drawn, individual tranches under the Acquisition Facility are expected to amortize over seven years. The proposed Acquisition Facility is also expected to increase availability under the Company's operating line from $6.0 million to $7.5 million and reduce the interest rate applicable to the operating line from prime plus 1.25% to prime plus 1.00%. The Acquisition Facility is expected to provide Elevate with a flexible source of committed capital while allowing the Company to maintain its historically conservative approach to senior leverage. Finalization of the Acquisition Facility remains subject to the negotiation and execution of definitive documentation, customary closing conditions and receipt of all applicable approvals. The Company expects the Acquisition Facility to be finalized during the third quarter of 2026.
Additional Offering Details
The net proceeds of the Offering will strengthen Elevate's balance sheet and provide capital to support the Company's acquisition pipeline, organic growth initiatives and working capital requirements, and broader strategy of consolidating the fragmented facilities management and essential commercial services sector. The securities issued pursuant to the Offering are subject to a statutory hold period of four months from the closing date of the Offering in accordance with applicable Canadian securities laws. In connection with the Offering, the Company paid the Underwriters cash fees of $578,322 and issued 309,120 compensation options (each, a "Compensation Option"). Each Compensation Option entitles the holder to acquire one Common Share at the Issue Price for a period of 24 months following the closing of the Offering.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities issued pursuant to the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or under applicable U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
About Elevate Service Group Inc.
Elevate is a national facilities management and essential commercial services platform focused on building an integrated platform through disciplined acquisitions and organic growth. Through its operating companies, Elevate brings over 20 years of experience serving national, blue-chip customers. The Company is building a scalable platform supported by shared infrastructure, technology and operational best practices. This approach drives efficiencies, expands service offerings, and delivers superior customer outcomes. Elevate trades on the TSX Venture Exchange under the ticker "SERV".
Cautionary Note Regarding Forward-Looking Information
This press release contains statements that constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates, and projections as of the date of this press release. Statements regarding the use of the net proceeds of the Offering, the proposed Acquisition Facility, including the expected terms, timing, availability and completion thereof, the Company's acquisition strategy, acquisition pipeline, organic growth initiatives, financial capacity, access to capital and future growth, and other predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events, or performance (often, but not always, using phrases such as "expects", "anticipates", "plans", "believes", "intends", or stating that certain actions, events, or results "may", "could", "would", "might", or "will" be taken or occur) are not statements of historical fact and may be forward-looking information.
In disclosing the forward-looking information contained in this press release, the Company has made certain assumptions, including that the net proceeds of the Offering will be used as anticipated, that definitive documentation in respect of the Acquisition Facility will be negotiated and executed on the expected terms and within the expected timeframe, that the applicable conditions to the Acquisition Facility will be satisfied, that all required approvals will be obtained, and that general business and economic conditions will not change in a material adverse manner. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that such expectations will prove to be correct. Known and unknown risks, uncertainties, and other factors may cause actual results to differ materially from those expressed or implied, including risks relating to the failure to obtain the necessary regulatory approvals, the failure to finalize the Acquisition Facility on the expected terms, within the expected timeframe or at all, the use of the net proceeds of the Offering, the Company's acquisition pipeline and organic growth initiatives, the Company's dependence on third-party financing and the uncertainty of additional financing, market conditions, the risk factors set out in the Company's filings with the Canadian securities regulators available under the Company's profile on SEDAR+ at www.sedarplus.ca, and general business, economic, competitive, political, and social uncertainties. Readers should not place undue reliance on the forward-looking information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information.
For further information, please contact:
Elevate Service Group Inc.
Paul Bissett, Chief Executive Officer
Frank Guo, Chief Financial Officer
info@elevateservicegroup.com
+1 (833) 336-0442
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Elevate Service Group Inc.
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Source: Elevate Service Group Inc.
