/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN/
CALGARY, July 9, 2015 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRN) today announced the completion of its previously announced initial public offering (the "Offering") of common shares of the Corporation ("Common Shares") through a syndicate of underwriters led by Cormark Securities Inc., BMO Capital Markets and National Bank Financial Inc. and including Canaccord Genuity Corp., Raymond James Ltd., AltaCorp Capital Inc. and Mackie Research Capital Corporation. An aggregate of 5,910,000 Common Shares were issued at an offering price of $11.00 per Common Share for total gross proceeds to the Corporation of $65,010,000. Crown's Common Shares will begin trading today on the Toronto Stock Exchange under the symbol "CRN".
Crown expects to use the net proceeds of the Offering as follows: (i) approximately $30 million will be used to purchase Crown's limited partnership interest in Crown Capital Fund IV, with a targeted ownership of 30% in Crown Capital Fund IV at its initial close; (ii) approximately $30 million will be used to fund Crown's Long-term Financing transactions and (iii) the balance will be used for working capital and general corporate and administrative purposes, including $0.35 million to be used to repay outstanding shareholder loans. Crown has granted to the underwriters an option, exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 886,500 Common Shares at $11.00 per Common Share to cover over-allotments, if any, and for market stabilization purposes.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, which may be made only by means of the prospectus, nor shall there by any sale of the Common Shares in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state, province or jurisdiction. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registrations requirements of such Act, unless they are unrestricted securities.
Torys LLP acted as counsel to Crown and Stikeman Elliott LLP acted as counsel to the underwriters.
Crown is a specialty finance company focused primarily on providing capital to successful Canadian companies, and to select U.S. companies, that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown originates, structures and provides tailored transitory and permanent financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.
This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to the use of proceeds. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Corporation's periodic filings with Canadian securities regulators. The Corporation undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
SOURCE Crown Capital Partners Inc.
For further information: Christopher Johnson, President & CEO, [email protected], (416) 640-6715