Agellan CommercialREIT struck a deal with a syndicate of underwriters led by RBC CapitalMarkets and BMO Capital Markets to raise gross proceeds of roughly C$40 millionvia a bought-deal offering.

The offering comprises 3.9 million units at a price of C$10.25apiece.

The company has granted the underwriters an overallotment optionto acquire up to an additional 585,000 units. The overallotment option is exercisablein whole or in part at any time up to 30 days following closing, expected to takeplace on or about Aug. 4.

Agellan plans to use the net proceeds for the financing of potentialfuture acquisitions, debt repayment owed under its existing credit facilities andfor general business purposes.