TORONTO, Nov. 11, 2013 /CNW/ - Smoothwater Capital Corporation (Smoothwater Capital) announced today that Smoothwater Capital Partners LP I (Smoothwater LP), a partnership controlled by Smoothwater Capital, has entered into
support and non-disclosure agreements with Nick Kyprianou, the former
Chief Executive Officer of Equity Financial Trust Company (Equity Trust), a wholly-owned subsidiary of Equity Financial Holdings Inc. (Equity), and with Darryl Ivan, the former Chief Risk Officer of Equity Trust.
As a result of these agreements, Mr. Kyprianou and Mr. Ivan may be
considered to be "joint actors" with Smoothwater LP.
Upon entering into the support agreements, Smoothwater LP, together with
Mr. Kyprianou and Mr. Ivan, had ownership of 1,145,717 shares and
securities convertible into shares of Equity (Shares), representing approximately 12.35% of the issued and outstanding
Shares. Smoothwater LP has ownership and control over 876,700 Shares
representing approximately 9.45% of the outstanding Shares (based upon
the 9,275,840 Shares stated by Equity in its most recent public filings
to be issued and outstanding).
Based on a review of public filings, Smoothwater LP, Mr. Kyprianou and
Mr. Ivan are collectively the largest shareholder of Equity.
Smoothwater LP and its affiliates may acquire additional Shares through
open market purchases, private agreements or otherwise.
Smoothwater LP intends to initiate or participate in, alone or together
with joint actors, all actions it deems necessary or advisable to
enhance the value of its investment in Equity, including exploring various means to effect changes in the management of
Equity and Equity Trust by reinstating Mr. Kyprianou and Mr. Ivan to
their former roles.
Smoothwater has retained Norton Rose Fulbright Canada LLP as its legal
advisers and Kingsdale Shareholder Services Inc. as shareholder and
This news release is issued pursuant to the early warning requirements
of applicable Canadian securities laws. Smoothwater LP will file early
warning reports in accordance with applicable securities laws, copies
of which will be available on SEDAR at www.sedar.com or upon request to Smoothwater LP.
Smoothwater Capital Corporation focuses on investing its own capital in
small to midcap Canadian public companies where there is an
identifiable path to significantly improve shareholder
value. Smoothwater works to effect change in targeted companies, often
collaboratively with institutional and other like-minded investors who
hold material positions but are not able to take on the time consuming
and costly activist role.
SOURCE: Smoothwater Capital Corporation
For further information:
For further information or to obtain a copy of an early warning report, please contact:
Smoothwater Capital Partners LP I
c/o Smoothwater Capital Corporation
120 Adelaide Street West
Attention: Stephen J. Griggs, Chief Executive Officer
Kingsdale Communications Inc.