Clarke Inc. announces increased investment in Holloway Lodging Corporation
HALIFAX, Aug. 1, 2014 /CNW/ - Clarke Inc. ("Clarke") (TSX: CKI) announces the increased investment in Holloway Lodging Corporation ("Holloway"), as a result of Holloway's assumption of Royal Host Inc.'s outstanding debentures as part of Holloway's previously announced acquisition of Royal Host Inc.
Clarke Inc. ("Clarke") owns the following securities of Holloway: 610,976 common shares, $3,986,000 principal amount of the 6.25% Series B Debentures, convertible into 113,601 common shares, $6,232,000 principal amount of the 7.50% Series C Debentures, convertible into 177,612 common shares, and $7,618,000 principal amount of the 6.25% Series D Debentures, convertible into 217,113 common shares. On an as converted basis, such securities represent 5.7% of the common shares.
Pursuant to the Securities Act (Ontario), Clarke, is presumed to be acting jointly or in concert with the Clarke Inc. Pension Plan ("Clarke Pension Plan"). On an aggregate basis, Clarke and the Clarke Pension Plan own, directly or indirectly, 2,119,302 common shares of Holloway on an as converted basis, representing approximately 10.8% of the outstanding common shares.
Clarke may, from time to time, acquire additional shares and debentures of Holloway, dispose of some or all of the existing or additional shares and debentures of Holloway, or continue to hold the shares and debentures of Holloway in the normal course of Clarke's investment activities.
Halifax-based Clarke Inc. invests in undervalued businesses and participates actively where necessary to enhance performance and increase return. Clarke trades on the Toronto Stock Exchange (CKI); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.
This press release may contain or refer to certain forward-looking statements relating, but not limited to, Clarke's expectations, intentions, plans and beliefs with respect to Clarke. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. These forward-looking statements include, but are not limited to, statements regarding the trading price of the Company's securities not fully reflecting the value of the Company's business.
Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Clarke to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Risks and uncertainties include, among others, the Company's investment strategy, legal and regulatory risks, general market risk, potential lack of diversification in the Company's investments, and interest rates and foreign currency fluctuations. Although Clarke has attempted to identify important factors that could cause actual actions, events or results or cause actions, events or results not to be estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Other than as required by applicable Canadian securities laws, Clarke does not update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Clarke Inc.For further information: Dustin Haw, Vice President Investments, Clarke Inc., 6009 Quinpool Road, 9th Floor, Halifax, Nova Scotia B3K 5J7, Telephone: (902) 442-3000, Fax: (902) 442-0187