Nov 21, 2012. /Lesprom Network/. Stella-Jones Inc. announced that it has entered into an underwriting agreement with a syndicate of underwriters led by RBC Capital Markets, pursuant to which such underwriters have agreed to purchase from treasury, on an underwritten private placement basis, 721,200 subscription receipts of the Company (the "Subscription Receipts") at a price of $68.00 per Subscription Receipt for aggregate gross proceeds to the Company of approximately $49 million (the "Underwriters' Private Placement"). In addition to the Underwriters' Private Placement, the Company has received a firm commitment from its principal shareholder, Stella Jones International S.A. ("SJ International") whereby SJ International has agreed to purchase 455,300 Subscription Receipts on the same terms as the Underwriters' Private Placement for aggregate gross proceeds to the Company of approximately $31 million (the "Shareholder's Private Placement"), thereby maintaining its current level of interest in the Company at 38.7%. Closing of the Underwriters' Private Placement and the Shareholder's Private Placement (collectively, the "Private Placements") are expected to occur on or about November 30, 2012 and are subject to certain conditions, including the receipt of the approval of the Toronto Stock Exchange. Net proceeds from the Private Placements will be used by the Company to partially fund the acquisition of McFarland Cascade Holdings, Inc. (the "Acquisition"). Stella-Jones announced on November 2, 2012 that it had signed a non-binding letter of intent with respect to the Acquisition. The Subscription Receipts will be exchangeable, without additional payment, into common shares of the Company on a one-for-one basis upon completion of the Acquisition. If the Acquisition is not completed by December 23, 2012, then the Subscription Receipts will be automatically terminated and cancelled and the principal amount subscribed plus accrued interest will be returned to the holders thereof. Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products. The Company supplies North America's railroad operators with railway ties, timbers and recycling services; and the continent's electrical utilities and telecommunications companies with utility poles. Stella-Jones also provides industrial products and services for construction and marine applications, as well as residential lumber to retailers and wholesalers for outdoor applications.