Elevate Service Group Secures $10M Bought Deal and $25M Acquisition Credit Facility to Accelerate Canadian Facility Services Consolidation

Equity Financing Closes at $10 Million Driven by Robust Institutional Demand

On July 16, 2026, Elevate Service Group announced the closing of its bought deal private placement, issuing 5,264,000 common shares at $1.90 each, raising approximately $10 million in gross proceeds. This upsizing from the initial $7 million target was attributed to strong demand from institutional investors.

Beacon Securities Limited acted as lead underwriter and sole bookrunner, supported by Canaccord Genuity Corp. and Raymond James Limited. The company paid $578,322 in cash fees and issued 309,120 compensation options exercisable at $1.90 per share for 24 months post-closing. All securities issued are subject to a mandatory four-month hold period under Canadian securities regulations.

Proposed $25 Million Acquisition Facility to Fuel M&A Growth

Elevate entered into a term sheet with its banking partner for a $25 million acquisition facility designed to finance future acquisitions while adhering to a conservative leverage approach. The facility will feature a multi-tranche revolving term loan with seven-year amortization schedules upon drawdown. Finalization depends on negotiation, definitive documentation, customary closing conditions, and regulatory approvals.

Additionally, the facility is expected to increase the company’s operating line from $6 million to $7.5 million and reduce the interest rate from prime plus 1.25% to prime plus 1.00%. The company targets early August 2026 for definitive documentation completion and full closing within Q3 2026.

Deployment of Proceeds and Strengthening Financial Position

Net proceeds from the $10 million equity raise will strengthen Elevate’s balance sheet and support its acquisition pipeline, organic growth initiatives, and working capital needs. This capital infusion aligns with the company’s strategy to consolidate Canada’s fragmented facilities management and commercial services market.

The timing of these financings positions Elevate to capitalize on an active acquisition pipeline, focusing on profitable, recurring-revenue businesses with attractive margins and platform synergies, particularly within technical services in the facilities sector.

Leadership Comments on Strategic Growth and Market Opportunity

Paul Bissett, CEO of Elevate, highlighted that strong institutional backing and banking partner support underscore confidence in consolidating Canada’s fragmented facility services sector. He emphasized that with enhanced capital resources, Elevate is well-positioned to execute its acquisition pipeline while maintaining disciplined capital allocation and leverage management.

Executive Chairman Romeo Di Battista Jr. described the company’s vision as building an integrated national platform delivering superior customer outcomes, sustainable growth, and long-term shareholder value. He noted the facility services industry is entering a phase where scale, technology, and operational excellence will differentiate leaders, and Elevate aims to partner with exceptional business owners by providing capital, shared systems, and national customer access.

Operating Line Improvements Under Acquisition Facility

Beyond acquisition funding, the proposed $25 million facility enhances Elevate’s operating line—a key working capital tool—by increasing availability from $6 million to $7.5 million and lowering the borrowing rate from prime plus 1.25% to prime plus 1.00%. These improvements reduce operational financing costs and increase flexibility.

Such enhancements support organic growth and facilitate integration of new acquisitions, providing multiple financing layers for acquisitions and operations.

Focused Acquisition Strategy and Platform Expansion

Elevate targets technical service companies with experienced management that complement existing operations, add capabilities, and enable expansion into attractive markets serving national clients. The company seeks profitable businesses with recurring customers and strong margins that offer platform synergies.

With over 20 years serving national blue-chip customers, Elevate’s platform leverages shared infrastructure, technology, and best practices to drive efficiencies, broaden services, and enhance customer outcomes. The combined equity raise and acquisition facility will significantly boost the company’s consolidation capabilities.

Regulatory and Timing Details

Securities from the equity offering are not registered under the U.S. Securities Act of 1933 and cannot be sold in the U.S. without registration or exemption. The offering was exclusively for Canadian investors, and this release does not constitute a U.S. securities offer.

The acquisition facility’s definitive documentation is expected by early August 2026, with full closing anticipated in Q3 2026, subject to customary conditions and approvals.

Forward-Looking Statements and Associated Risks

The announcement contains forward-looking statements regarding use of proceeds, acquisition facility, growth strategy, and pipeline, based on current expectations and estimates. Actual outcomes may differ materially due to risks such as failure to obtain approvals, delays in finalizing the facility, uncertainties in proceeds use, acquisition risks, financing dependencies, market conditions, and broader economic and political factors. Readers are advised to consult Elevate’s SEDAR+ filings for detailed risk disclosures.

Market Context and Consolidation Opportunity in Facility Services

Elevate’s capital raise reflects its view of a significant consolidation opportunity in Canada’s facility services sector. The fragmented market, combined with increasing importance of scale, technology, and operational excellence, favors well-capitalized platforms pursuing acquisitions to build national capabilities.

Focusing on businesses serving national blue-chip clients, Elevate aims to build recurring revenue streams with reduced customer concentration risk. By uniting regional and technical service operators under one platform, the company seeks operational synergies, cost efficiencies, and expanded service offerings for national accounts. The $10 million equity raise and pending $25 million acquisition facility underpin this multi-year consolidation strategy.