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TORONTO, April 1, 2016 /CNW/ - Lorne Park Capital Partners Inc. (TSXV:LPC) ("LPCP") announced today that it has signed a share purchase agreement ("SPA") 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 "Transaction").
Index provides discretionary investment management services, maximizing the benefits of ETFs for individuals and foundations. Index has approximately $120 million in assets under management.
"We are excited to welcome the Index team and its clients to LPCP and Bellwether Investment Management Inc. ("Bellwether"). With the integration of Index and Bellwether, we will have five offices from Vancouver to Montreal, an expanded portfolio management team and a broader set of investment solutions for our clients and the advisors that partner with us," said Robert Sewell, Chief Executive Officer of LPCP and Bellwether.
The Transaction is at arm's length and does 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 will result from the Transaction.
The SPA 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 payable in 12 and 18 months, subject to adjustment at each payment date. The total purchase price for the shares is expected to be $2,236,913, subject to adjustments.
The common shares of LPCP issuable pursuant to the Transaction will 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.
The Transaction is expected to close on or about April 8, 2016, subject to a number of customary conditions.
After the closing of the Transaction, LPCP expects that Index will amalgamate with LPCP's wholly owned subsidiary, Bellwether Investment Management Inc., 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. 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 utilizing its proprietary "Disciplined Dividend Growth" Investment Process. Bellwether provides discretionary investment management focused on North American Dividend Growth investing. 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 services for individuals and foundations. 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