LAVAL, QC, Sept. 4, 2012 /CNW Telbec/ - Hart Stores Inc. (TSXV: HIS) is pleased to announce that it has entered into a new loan in an aggregate principal amount of $2.5 million with HMT Holdings Inc., a private company of which the majority shareholder of Hart Stores is an indirect shareholder .
The loan is subordinated to Hart Stores' senior credit facility and is secured by a first ranking security interest on the shares of a wholly-owned real estate subsidiary of Hart Stores and a second ranking security interest on all the assets of Hart Stores. This loan is in compliance with an amendment to Hart Stores' senior credit facility and will be used for working capital purposes.
Due to the 25% indirect ownership of the majority shareholder of Hart Stores in the lender, the loan may be considered a "related party transaction" for the purpose of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions and Hart Stores is relying on exemptions from the formal valuation and minority approval requirements of Regulation 61-101.
In addition, Hart Stores regrets to announce that Mr. J. Pierre Brunet has resigned as a director of the Hart Stores, for personal reasons, a position he held since 2006. We thank him for his valued contribution and wish him well in his future endeavors.
About Hart Stores:
Hart Stores Inc. operates a network of 60 mid-sized department stores located in secondary and tertiary markets in Eastern Canada, where the Company has established a dominant position in many of the communities that it serves. The stores offer an extensive and differentiated selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, electronics, appliances, giftware, toys and seasonal goods.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: HART STORES INC.
For further information:
Hart Stores Inc.
Mr. Robert Farah
President and COO
Hart Stores Inc.