/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
EDMONTON, April 16, 2013 /CNW/ - Carfinco Financial Group Inc. ("Carfinco" or the "Company") (TSX:CFN) is pleased to announce that it has successfully closed the sale of 1,771,000 common shares of the Company from treasury (the "Treasury Offering"). The Treasury Offering includes 231,000 common shares from the exercise in full of the over-allotment option granted to the underwriters. Upon closing of the Treasury Offering, Carfinco has 26,416,230 common shares outstanding. The net proceeds from the Treasury Offering will be used by the Company to repay existing indebtedness, thereby increasing the credit available to fund future potential acquisitions and for general corporate purposes.
The Company also announces the successful closing of the secondary offering (the "Secondary Offering") consisting of 360,000 common shares from the holdings of Mr. David Rosenkrantz and 360,000 common shares from the holdings of Mr. David Prussky. These individuals are non-management members of the Board of Directors of the Company. The Company will not receive any net proceeds from the Secondary Offering.
The total offering, consisting of the Treasury Offering and the Secondary Offering, was conducted at a purchase price of $9.75 per common share for total gross proceeds of $24,287,250, comprising $17,267,250 as the Treasury Offering and $7,020,000 as the Secondary Offering. A syndicate led by GMP Securities L.P. and including Stonecap Securities Inc. and Industrial Alliance Securities Inc. acted as underwriters for the bought deal offering.
The common shares were offered by way of a short form prospectus filed in each of the provinces of Canada (other than Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and will be traded on the Toronto Stock Exchange under the symbol "CFN".
The securities offered have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Carfinco Financial Group Inc.
Carfinco focuses on providing consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plan to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The shares of the company trade on The Toronto Stock Exchange under the symbol "CFN".
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the potential use of available credit. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
SOURCE: Carfinco Financial Group Inc.
For further information:
Mr. Tracy A. Graf
CEO & Director of Carfinco Financial Group Inc.
Web site: www.carfinco.com
The Howard Group Inc.
Web site: www.howardgroupinc.com