In an effort to raise the funds necessary to expand its rental operations at Home Depot stores, Compact Power Equipment Centers last week announced plans to raise CDN$25 million (about U.S. $25.4 million) by floating on the TSX-Venture Exchange in Toronto.
The company merged with Snow Eagle Resources, a capital company with no operations, to achieve the listing on the Toronto exchange. Under terms of the agreement, Snow Eagle will issue common shares to Compact Power worth CDN$0.15 each for a total deal price of CDN$20 million.
CPEC partnered with Home Depot in 2009 to provide rental services at 110 locations. The company has since grown that to 280 stores in 17 states. CPEC plans to use funds raised in the TSX IPO to expand its business further in the U.S. and Canada.
CPEC Rentals rents mini-skid-steer loaders, aerial equipment, mini-excavators, trenchers, aerators, chipper/shredders, stump grinders and more from its Home Depot locations.
Compact Power is headquartered in Fort Mill, S.C.
