CALGARY, March 27, 2020 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that Crown Partners Fund, an investment fund managed by Crown and in which Crown holds an approximate 39% interest, has completed a two-year, $5.5 million term loan with CCI Wireless ("CCI"), a wireless internet service provider focused on Western Canada.
Headquartered in Calgary, CCI specializes in providing internet connectivity to rural and remote residential clients as well as customized connectivity solutions for First Nations and urban and rural enterprise clients across Western Canada. CCI was founded in 2007 by nine Alberta natural gas co-ops that were receiving insufficient internet service from incumbent providers. CCI maintains a carrier-grade network that covers more than 250,000 square kilometers with over 23,000 clients. The funding from Crown Partners Fund will be used to repay existing debt and support CCI's growth plans.
"CCI has built a large, diverse and stable client base across western Canada by addressing the growing need for connectivity solutions to under-served regions," said Chris Johnson, Crown's President & CEO. "This is a long-term growth theme we understand well from our current investment in telecommunications infrastructure and one we believe has considerable growth opportunity for Crown."
"In Crown, CCI has secured the ideal strategic partner to drive our growth strategy. Crown's experience in the telecom infrastructure space in North America is an ideal fit for CCI; allowing us to expand on our success in deploying Carrier grade telecom solutions for underserved communities," said Jordan Young, CEO.
The demand for fixed internet across Canada has been growing as consumers and enterprises increasingly rely on internet connectivity and consume greater amounts of data. The new minimum service standards recently defined by the Canadian Radio-television and Telecommunications Commission results in greater than 60% of the rural population of Canada falling below the minimum internet speed requirements. CCI operates in Canada's four western provinces that combine to represent a target market of $4.6 billion annually comprised of residential and enterprise fixed internet customers.
This investment brings the total loans outstanding in Crown Partners Fund to $213.3 million across 11 companies.
About Crown Capital Partners (TSX:CRWN)
Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co- invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.
This news 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 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 Crown's periodic filings with Canadian securities regulators. See Crown's most recent annual information form for a detailed discussion of the risk factors affecting Crown. Crown 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: Craig Armitage, Investor Relations, [email protected], (416) 347-8954