K-Bro Linen Inc. announced on May 27, 2025, the filing of a final short form prospectus for a bought deal public offering of 2,030,000 subscription receipts at $34.55 each, for gross proceeds of $70,136,500. The offering closed on May 30, 2025, including the full exercise of the over-allotment option for 304,500 additional receipts, bringing total gross proceeds to $80,656,975. The offering was made under an underwriting agreement dated May 16, 2025, led by TD Securities Inc. with participation from several other underwriters.

Each subscription receipt entitles the holder to one common share of K-Bro upon satisfaction of escrow conditions related to the proposed acquisition of STAR Mayan Limited, a commercial laundry business in England. Net proceeds will partially fund the acquisition and related costs. If the acquisition is not completed by June 30, 2025, or a termination event occurs, investors will be refunded their principal with accrued interest and any unpaid dividend equivalents.

Subscription receipts trade on the TSX under the symbol KBL.R. Holders are entitled to a dividend equivalent payment for K-Bro’s May 2025 dividend. Legal counsel includes Stikeman Elliott LLP for K-Bro and Goodmans LLP for the underwriters.