K-Bro Linen Inc. filed a final short form prospectus on May 27, 2025, for a bought deal public offering of 2,030,000 subscription receipts at $34.55 each, for gross proceeds of $70,136,500. Each subscription receipt entitles the holder to receive one common share of K-Bro upon satisfaction of escrow release conditions tied to the closing of a proposed acquisition. As of the filing date, the offering had not yet closed and remains conditional under the terms of the underwriting agreement.

The offering is being made pursuant to an underwriting agreement dated May 16, 2025, between K-Bro and a syndicate of underwriters led by TD Securities Inc., and including National Bank Financial Inc., Raymond James Ltd., ATB Securities Inc., BMO Nesbitt Burns Inc., CIBC Capital Markets, Acumen Capital Finance Partners Limited, Cormark Securities Inc., Stifel Nicolaus Canada Inc., and Leede Financial Inc. The $34.55 offering price was determined by negotiation between the company and the underwriters.

Proceeds will be used to partially fund the acquisition and related costs. If escrow conditions are not met by a set deadline, investors will receive a refund with accrued interest. Legal counsel for K-Bro Linen is Stikeman Elliott LLP, while the underwriters are represented by Goodmans LLP.