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TORONTO, Feb. 1, 2016 /CNW/ - Lorne Park Capital Partners Inc. (TSXV:LPC) ("LPCP") announced today that it has entered into a non-binding Letter of Intent ("LOI") to purchase all of the outstanding securities of INDEX Wealth Management Inc. ("INDEX"), an independent portfolio manager with offices in Vancouver, Calgary and Winnipeg (the "Proposed Transaction").
INDEX provides discretionary investment management and wealth management services, maximizing the benefits of ETFs, for individuals, foundations, and non-profit corporations in Vancouver, Calgary and Winnipeg. As of December 31, 2015, INDEX had approximately $120 million in assets under management.
"We are confident that we have found a partner in INDEX that shares similar perspectives on investment management and a commitment to delivering tailored investment solutions to affluent families," commented Robert Sewell, Chief Executive Officer of LPCP and Bellwether.
"This proposed acquisition continues to enhance our presence within the investment management industry by providing us with a broader suite of investment options and additional resources that will benefit our clients," said Alan Fustey, President of INDEX.
"With the proposed addition of INDEX, the combined firm will gain a national presence with offices from Toronto to Vancouver. This expanded presence will allow us to better serve clients across Canada and allow us to work more effectively with advisors nationally," said Steve Meehan, Chairman of LPCP and Bellwether.
The Proposed Transaction is at arm's length and would not represent a reverse takeover of LPCP nor a fundamental acquisition under the TSX Venture Exchange ("TSXV") policies and no change of control of LPCP would result from the Proposed Transaction.
The LOI contemplates that LPCP will acquire the shares in INDEX in exchange for the issuance of 1,375,000 common shares of LPCP and cash consideration payable on closing and in two future installments on the dates that are 12 and 18 months after the date of closing of the Proposed Transaction, subject to adjustment based on INDEX's annualized revenue as of each payment date. As of today's date, LPCP expects that the total purchase price will be $2.25 million.
The common shares of LPCP issuable pursuant to the Proposed Transaction are proposed to be issued at $0.40 per common share, being approximately equal to the 6 month volume weighted average price of the common shares of the LPCP on the TSXV, determined as of December 31, 2015, subject to any limits required by the TSX Venture Exchange.
The Proposed Transaction is expected to close on or around March 31, 2016, subject to a number of conditions, including the negotiation of a definitive agreement, due diligence, TSXV final acceptance, securities regulatory approval and customary consents.
Assuming the closing of the Proposed Transaction, LPCP expects that INDEX will amalgamate with LPCP's wholly owned subsidiary, Bellwether Investment Management Inc. ("Bellwether"), a registered portfolio manager and investment fund manager and INDEX will continue as a division of Bellwether.
About Lorne Park Capital Partners Inc.
LPCP was created to bring together boutique investment management and wealth advisory firms in order to deliver robust, cost effective investment solutions to affluent investors, foundations, estates and trusts. LPCP's unique strategy creates better alignment between investment managers and wealth advisors while providing them with additional resources to accelerate their growth.
About Bellwether Investment Management Inc.
Bellwether is a boutique investment manager that offers tailored investment solutions for affluent investors, foundations, estates and trusts utilizing its proprietary "Disciplined Dividend Growth" Investment Process. Bellwether provides discretionary investment management focused on North American Dividend Growth investing and is dedicated to serving the distinct needs of affluent families. Bellwether's suite of investment solutions includes Canadian, US and global equity and fixed income strategies. Bellwether is a subsidiary of LPCP.
About INDEX Wealth Management Inc.
Index is an independent portfolio manager that provides discretionary investment management and wealth planning services for individuals, foundations and non-profit corporations. Index manages client portfolios utilizing an investment philosophy which maximizes the benefits of Exchange Traded Funds (ETFs) as its core holdings which are often combined with equity option strategies to enhance income or reduce volatility.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking statements. LPCP has tried, whenever possible to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential", "may" and other similar expressions. These statements reflect LPCP's current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause LPCP's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. LPCP undertakes no obligation to update or advise in the event of any change, addition or alteration to the information contained in this news release including such forward-looking statements, unless otherwise required under applicable law.
SOURCE Lorne Park Capital Partners Inc.
For further information: Robert Sewell, Chief Executive Officer, firstname.lastname@example.org, (905) 337-2227