HALIFAX, Sept. 24, 2013 /CNW/ - Clarke Inc. ("Clarke") (TSX: CKI, CKI.DB.A) is pleased to announce that it has entered into a voting support agreement with BEC Acquisition Ltd., a subsidiary of Mill City Capital L.P., (together, "Mill City") pursuant to which it has agreed to vote in favour of Mill City's proposed acquisition of Bonnett's Energy Corp. ("Bonnett's"). Clarke currently owns approximately 3.7 million shares of Bonnett's representing approximately 25% of Bonnett's outstanding shares.
Assuming the proposed transaction is completed in accordance with its terms, Clarke expects to receive approximately $25.9 million for its shares of Bonnett's.
George Armoyan, President and CEO, stated: "We are pleased with the result of our investment in Bonnett's. The transaction value reinforces our belief that the public markets have undervalued many of the companies we own. We will continue to work to close these valuation gaps."
Clarke will review how to best deploy the sale proceeds, including making further investments in undervalued companies, reducing debt, paying a special dividend and/or repurchasing shares.
Halifax-based Clarke invests in a variety of private and publicly-traded businesses and participates actively where necessary to enhance performance and increase return. Clarke's securities trade on the Toronto Stock Exchange (CKI; CKI.DB.A); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.
Note on Forward-Looking Statements and Risks
This press release may contain or refer to certain forward-looking statements relating, but not limited to, Clarke's expectations, intentions, plans and beliefs with respect to Clarke. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, statements relating to the potential sale of its investment in Bonnett's and the use of proceeds from such sale. Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results to be materially different from the results expressed or implied by such forward-looking statements and there can be no assurance that such statements will prove to be accurate. Other than as required by applicable Canadian securities laws, Clarke does not intend to update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE: CLARKE INC.
For further information:
Chief Financial Officer, Clarke Inc.
Telephone: (902) 442-3000