MONCTON, NB, April 2, 2013 /CNW Telbec/ - Imvescor Restaurant Group Inc. ("Imvescor" or the "Company") (TSX: IRG) announced today that Fairfax Financial Holdings Limited ("Fairfax") has sold to GMP Securities L.P. ("GMP") all of the 9,897,509 common shares and 16,334,000 warrants of Imvescor it holds, representing 23.6% of the common shares of Imvescor on a non-diluted basis and 45.0% of the common shares of Imvescor on a partially diluted basis. Each warrant entitles the holder thereof to purchase one common share of Imvescor at an exercise price of $0.65.
Closing of the sale is expected to occur on or about April 16, 2013. The Company understands that GMP, an investment dealer, intends to resell the common shares and warrants of Imvescor purchased from Fairfax on a private placement basis as part of one or more transactions.
Fairfax had initially made a significant investment in Imvescor in connection with a series of refinancing and recapitalization transactions completed in December 2011. "Fairfax greatly contributed to position the Company for a return to long-term growth and profitability. Even though Imvescor did not represent for Fairfax a significant portfolio investment, its generous advice and support significantly contributed to grow Imvescor into a stronger business with vastly increased expertise" said Denis Richard, President and Chief Executive Officer of Imvescor. "Today's announcement marks the beginning of a new chapter for Imvescor, and we are confident in our ability to take advantage of future opportunities as a widely-held, independent company", added Mr. Richard.
As a result of the sale by Fairfax of all of its common shares and warrants of Imvescor, Fairfax's designees on the Company's Board of Directors, Bradley Martin and Ron D. Barbaro, have resigned their positions, effective as of the closing of the sale. "We wish to sincerely thank Brad and Ron for their contribution to the Board", said Mr. Richard. The Company intends to fill vacancies created by the resignation of Messrs. Martin and Barbaro and appoint a new Chair of the Board of Directors, a position previously held by Mr. Martin, in the near future.
About Imvescor Restaurant Group Inc.
Headquartered in Moncton, New Brunswick, Imvescor Restaurant Group owns franchised and corporate stores throughout Canada, under four brands: Pizza Delight® operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes® and Scores® restaurants operate primarily in Quebec in the family and casual dining segments and the take-out and delivery segments. Bâton Rouge® operates in Quebec, Ontario, Alberta and Nova Scotia in the casual dining segment.
Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release regarding the Company, including, but not limited to, the Company's business objectives, strategies and priorities, and other statements that are not historical facts, are "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside the Company's control referenced in the Company's continuous disclosure filings which are available on SEDAR at www.sedar.com. Although the forward-looking statements contained herein are based upon what the Company believes to be reasonable assumptions on the date of this press release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The Company assumes no obligation to update such forward-looking statements to reflect new information, future events or otherwise, except as required by applicable securities laws.
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