MONTREAL, June 18, 2014 /CNW Telbec/ - Le Château Inc. (TSX: CTU.A)
announced today that it has completed the previously announced
conversion of the $5 million unsecured convertible loan from a
corporation controlled by Jane Silverstone Segal, the Chief Executive
Officer and Chairman of the Board of Directors of the Company, into
2,617,801 Class A subordinate voting shares of Le Château. In
accordance with the terms of the loan, the Class A shares are being
issued at $1.91 per Class A share, being the volume weighted average
trading price of the Class A shares on the Toronto Stock Exchange for
the five trading days starting June 11, 2014.
After giving effect to the issuance of the shares, Ms. Segal owns,
directly or indirectly, and exercises control over 8,708,801 Class A
shares (being approximately 34.3% of the outstanding Class A shares)
and 160,000 Class B voting shares (being approximately 3.5% of the
outstanding Class B shares), representing approximately 14.5% of the
votes attached to all outstanding shares of Le Château. The Class A
shares are being acquired in connection with the conversion of the loan
and are held for investment purposes. With this issuance and previous
acquisitions of Class A shares, the number of Class A shares Ms. Segal
owns, directly or indirectly, and over which control and direction is
exercised by Ms. Segal increased by 8.1% since acquisitions of Class A
shares were last reported by Ms. Segal on October 17, 2013.
Le Château is a leading Canadian brand in specialty retailing, offering
a broad array of contemporary fashion apparel, accessories and footwear
for style-conscious women and men. The Le Château brand is sold
exclusively through the Company's 226 retail locations, of which 225
are located in Canada. The Company's retail locations are primarily
found in major urban shopping malls, as well as street-front locations
with high pedestrian traffic. In addition, the Company has 6 stores
under license in the Middle East and Asia. Le Château's web-based
marketing is further broadening the Company's customer base among
internet shoppers in both Canada and the United States. With its
54-year tradition of vertical integration, emphasizing a design and
manufacturing approach to retailing, Le Château is unique among
Canadian fashion merchants.
This news release may contain forward-looking statements relating to the
Company and/or the environment in which it operates that are based on
the Company's expectations, estimates and forecasts. These statements
are not guarantees of future performance and involve risks and
uncertainties that are difficult to predict and/or are beyond the
Company's control. A number of factors may cause actual outcomes and
results to differ materially from those expressed. These factors also
include those set forth in other public filings of the Company.
Therefore, readers should not place undue reliance on these
forward-looking statements. In addition, these forward-looking
statements speak only as of the date made and the Company disavows any
intention or obligation to update or revise any such statements as a
result of any event, circumstance or otherwise except to the extent
required under applicable securities law.
Factors which could cause actual results or events to differ materially
from current expectations include, among other things: the ability of
the Company to successfully implement its business initiatives and
whether such business initiatives will yield the expected benefits;
competitive conditions in the businesses in which the Company
participates; changes in consumer spending; general economic conditions
and normal business uncertainty; seasonality and weather patterns;
changes in the Company's relationship with its suppliers; lease
renewals; information technology security and loss of customer data;
fluctuations in foreign currency exchange rates; interest rate
fluctuations; liquidity risk and changes in laws, rules and regulations
applicable to the Company. The foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our results.
SOURCE: LE CHATEAU INC.
For further information:
Emilia Di Raddo, CPA, CA, President (514) 738-7000
Johnny Del Ciancio, CPA, CA, Vice-President, Finance (514) 738-7000
MaisonBrison: Pierre Boucher (514) 731-0000
Source: Le Château Inc.
8300 Décarie Boulevard.
Montreal, Québec, H4P 2P5
For a copy of the early warning report filed by Jane Silverstone Segal in connection with the transactions described in this press release, please contact Johnny Del Ciancio, Vice-President, Finance, at (514) 738-7000 or consult Le Château's profile on SEDAR at www.sedar.com.