TORONTO, Dec. 15, 2014 /CNW/ - Smoothwater Capital Corporation ("Smoothwater Capital") announced that Smoothwater Capital Partners LP I ("Smoothwater LP"), the registered and beneficial owner of 1,891,900 common shares of Equity Financial Holdings Inc. ("Equity"), was dissolved effective today and distributed all of its common shares of Equity to its limited partners.
Smoothwater Capital was a limited partner in Smoothwater LP and, as a result of the dissolution, acquired beneficial ownership of 1,584,735 common shares of Equity representing approximately 16.67% of the total issued and outstanding common shares of Equity (based upon the 9,507,508 shares stated to be issued and outstanding as of November 12, 2014 by Equity in its management discussion and analysis for the period ending September 30, 2014 and filed on SEDAR on November 12, 2014).
Stephen J. Griggs, the Chief Executive Officer and a director of Smoothwater and a director and the Chair of the Board of Equity, may be considered to be a "joint actor" with Smoothwater. Mr. Griggs exercises control over and has an ownership interest in Underwood Capital Partners Inc. ("Underwood"), also a former limited partner of Smoothwater LP. Underwood today acquired beneficial ownership of 36,137 common shares of Equity on the dissolution of Smoothwater LP, representing approximately 0.38% of the common shares of Equity. Mr. Griggs is also the beneficial owner of 551.8 common shares of Equity pursuant to the employee share purchase plan of Equity, representing approximately 0.0058% of the common shares of Equity. Accordingly, Mr. Griggs exercises control and direction over 36,689 Equity Shares representing approximately 0.39% of the common shares of Equity. Mr. Griggs also participates in the deferred share unit plan of Equity available to directors in payment of their quarterly directors' fees.
As at December 15, 2014, Smoothwater and Mr. Griggs together beneficially owned or exercised control and direction over an aggregate of 1,621,424 common shares of Equity, representing approximately 17.05% of the common shares of Equity.
Depending on market conditions, Smoothwater and its affiliates, Mr. Griggs and/or Underwood may from time to time in the future acquire or dispose of shares of Equity, through open market purchases, private agreements or otherwise, for investment purposes.
This news release is issued pursuant to the early warning requirements of applicable Canadian securities laws. Smoothwater Capital will file an early warning report in accordance with applicable securities laws, copies of which will be available on SEDAR at www.sedar.com or upon request to Smoothwater Capital.
About Smoothwater Capital:
Smoothwater Capital Corporation focuses on investing in small to midcap Canadian public companies where there is an identifiable path to significantly improve shareholder value. Smoothwater works to effect change in targeted companies, often collaboratively with institutional and other like-minded investors who hold material positions but are not able to take on the time consuming and costly activist role.
SOURCE: Smoothwater Capital Corporation
For further information: or to obtain a copy of the related early warning report, please contact: Smoothwater Capital, Corporation, Suite 2500, 120 Adelaide Street West, Toronto, Ontario, M5H 1T1; Attention: Stephen J. Griggs, Chief Executive Officer, Telephone: 416.644.6582, Email: [email protected]