Equitable Group Inc. today announced that it has closed its previously announced “bought deal” financing of 1.6 million common shares at $21.50 per common share, for aggregate gross proceeds of approximately $34.4 million.

The underwriters co-led by GMP Securities L.P. and TD Securities Inc., and a syndicate comprised of BMO Nesbitt Burns Inc., Cormark Securities Inc., CIBC World Markets Inc., Scotia Capital Inc. and Clarus Securities Inc. have an option, exercisable for a period of 30 days, to purchase up to an additional 160,000 common shares to cover over-allotments and for market stabilization purposes.

Equitable has also closed a non-brokered private placement of 240,000 common shares at a price of $21.50 per common share to Emberwood Glen Enterprises Ltd., a wholly owned subsidiary of Oakwest Corporation Ltd., a corporation whose controlling shareholders are Austin Beutel and Eric Beutel, each directors of Equitable, for aggregate gross proceeds of $5.16 million. The shares issued in the private placement are subject to a four-month statutory hold period.

Equitable says it intends to use the net proceeds of the public offering and private placement to invest in the equity of the company’s wholly owned subsidiary, The Equitable Trust Company to augment its Tier 1 capital regulatory capital base, to support the continued growth of its single-family mortgage portfolio, and the balance for general corporate purposes.