CALGARY, March 28, 2013 /CNW/ - Leon's Furniture Limited (TSX: LNF) and
The Brick Ltd. (TSX: BRK) are pleased to announce today the completion
of the previously announced plan of arrangement pursuant to which
Leon's acquired all of the outstanding common shares of The Brick (the
"Shares") for $5.40 per Share and all of the outstanding common share purchase
warrants of The Brick (the "Warrants") were purchased for cancellation for $4.40 per Warrant (the "Arrangement").
Subject to the terms of the Arrangement, holders of Shares were
permitted to elect to receive as consideration $5.40 in cash per Share
or 0.0054 convertible debentures of Leon's (the "Convertible Debentures") per Share, and holders of Warrants were permitted to elect to receive
as consideration $4.40 in cash per Warrant or 0.0044 Convertible
Debentures per Warrant. As holders of Shares and Warrants have elected
to receive an aggregate principal amount of Convertible Debentures in
excess of the maximum of $100 million principal amount of Convertible
Debentures to be issued under the Arrangement, those holders of Shares
and Warrants will have the number of Convertible Debentures they
elected to receive pro rated, with the balance of the consideration to
which they are entitled under the Arrangement paid in cash. Based on
the elections received by the election deadline, it is expected that
holders of Shares and Warrants that elected to receive Convertible
Debentures will have approximately 21.85 percent of their consideration under the Arrangement satisfied through
the delivery of Convertible Debentures.
With the completion of the plan of arrangement, the common shares and
common share purchase warrants of The Brick will cease to be listed for
trading on the Toronto Stock Exchange on or about April 1, 2013.
Leon's was founded in 1909 and is one of Canada's best-known home
furnishings retailers offering great value on household furniture,
mattresses, appliances and home electronics. Leon's has 79 stores in
Newfoundland and Labrador, Quebec, Ontario, Manitoba, Saskatchewan,
Alberta, Nova Scotia, New Brunswick, and Prince Edward Island.
About The Brick
The Brick, which opened its first store in Edmonton, Alberta in 1971,
has grown over the last 40 years to become one of Canada's leading
retailers of household furniture, mattresses, appliances and home
electronics. The Brick has 231 stores operating under The Brick,
United Furniture Warehouse, The Brick Mattress Store and Urban Brick
This news release contains "forward-looking statements" within the
meaning of applicable Canadian securities laws, including (but not
limited to) statements concerning anticipated future events, results,
circumstances, performance or expectations, that reflect management's
current expectations and are based on information currently available
to management of Leon's, The Brick and their respective subsidiaries.
The words "may", "will", "should", "believe", "expect", "plan",
"anticipate", "intend", "estimate", "predict", "potential", "continue"
or the negative of these terms, or other expressions which are
predictions of or indicate future events and trends and which do not
relate to historical matters, identify forward-looking matters. The
inability to successfully integrate the operations of the two companies
and other factors discussed in documents filed with the securities
commissions across Canada by Leon's and The Brick could cause actual
results to differ materially from those discussed in the forward
looking statements. Reliance should not be placed on forward-looking
statements because they involve known and unknown risks, uncertainties
and other factors, which may cause the actual results, performance or
achievements of Leon's or The Brick to differ materially from
anticipated future results, performance or achievements expressed or
implied by such forward-looking statements. Leon's and The Brick
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, other than as required by applicable law.
SOURCE: The Brick Ltd.
For further information:
Vice-President and CFO
Leon's Furniture Limited