Monthly Archives: November 2017

CALGARY, November 17, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the repayment by Medicure Inc. (“Medicure”) (TSXV: MPH) of a special situations loan managed by Crown.

Medicure is a pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. cardiovascular market.  Crown arranged a $60.0 million, four-year term loan to Medicure in November 2016, of which Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 36.5% interest, advanced $30 million, with the remaining $30 million syndicated to a limited partner in Crown’s funds. Medicure used the proceeds to purchase additional shares of Apicore, a developer and manufacturer of specialty Active Pharmaceutical Ingredients and pharmaceuticals. In October 2017, Medicure announced that it sold its interests in Apicore.

“The Apicore acquisition was a tremendous value-creating transaction for Medicure and we wish the team continued success as they advance their growth plans,” said Chris Johnson, President and CEO of Crown. “This loan generated strong returns for Crown and its investors.”

“Crown has been an excellent financial partner to Medicure, and their financing solution and speed of execution were instrumental in allowing us to execute on this very successful acquisition while minimizing dilution,” said Dr. Albert D. Friesen, Medicure’s President and Chief Executive Officer.

Medicure has prepaid this loan in full, including principal, interest and fees. Crown IV LP continues to own warrants to acquire 450,000 common shares of Medicure, exercisable at $6.50 per share.

ABOUT CROWN

Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and 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 also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term 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.

FORWARD-LOOKING STATEMENTS

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 in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding Crown’s dividend and future increases to the dividend. 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 Annual Information Form for a detailed discussion of the risk factors affecting Crown. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. 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.

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Crown Capital Partners Announces Financial Results for Q3 2017

CALGARY, November 8, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced its financial results for the third quarter ended September 30, 2017. Crown’s complete financial statements and management’s discussion and analysis for the three- and nine-month periods ended September 30, 2017 are available on SEDAR at www.sedar.com.

Q3 2017 Financial & Operating Highlights

• Total revenue increased to $5.6 million (2016 – $2.9 million) in Q3 and $20.1 million (2016 – $12.9 million) for the fiscal year to date.
  • Q3 2017 results included interest revenue of $4.8 million, fees and other income of $0.1 million, a net realized loss from investments of $(1.1) million, and a net change in unrealized gains in fair value of investments of $1.7 million.
• Net income, net of non-controlling interests, of $1.1 million (2016 – $0.8 million), or $0.12 per common share (basic) (2016 – $0.09).
• Adjusted EBIT¹ of $2.0 million in Q3 (2016 – $1.5 million).
• Total equity per common share (basic) of $10.85 at September 30, 2017.
• Total assets of $216.3 million at September 30, 2017, up from $182.4 million at December 31, 2016.
• Cash and cash equivalents of $15.7 million, compared with $19.3 million at December 31, 2016.
• On August 8, 2017, declared a quarterly dividend of $0.13 per share, an increase of 8% over the previous quarterly dividend of $0.12 per share, representing the second increase since the dividend was initiated in January 2016.
• Completed a $50 million closing for Crown Capital Fund IV, LP (CCF IV LP), bringing the current total capital committed to the fund to $225 million.
• On November 3, 2017, the Court of Queen’s Bench of Alberta approved the sale of Petrowest’s Civil division to RBee Aggregate Consulting Ltd. (“RBee”), a newly established company in which CCF IV LP holds an approximate 46% interest, for total consideration of $29.0 million. The acquisition will be partially funded with the assumption of approximately $17 million of Petrowest loans, subject to closing adjustments, held by CCF IV LP and its syndicate partner, which will hold a 50% equity interest in RBee with a cost base of $5 million (CCF IV LP interest – $4.6 million) and an interest-bearing, second-lien loan to RBee of approximately $12 million (CCF IV LP interest – approximately $11 million).
• On November 7, 2017, Crown announced a quarterly dividend of $0.13 per share to shareholders of record on November 17, 2017.

“After a highly active second quarter for new transactions, as well as two successful repayments, we experienced a slow quarter in terms of new loan origination, but we have experienced an uptick in activity in recent months, which we believe puts us on track to meet our annual deployment target,” said Chris Johnson, President and CEO of Crown. “In addition, we continued to focus on our other strategic priorities such as capital development. The third quarter saw us complete another upsizing of $50 million in Crown IV LP, further underscoring the quality of our portfolio and the strong demand from institutional limited partners. The committed capital in the fund, combined with cash on hand and our credit facility, gives us substantial resources to continue growing and diversifying our investments in the coming quarters and capitalize on the strong demand we see in the mid-market for our customized, non-dilutive solutions.”

Conference Call & Webcast

Crown will host a conference call to discuss its Q3 2017 financial results at 8:30 a.m. EDT on November 8, 2017. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial 647-427-7450 or 1-888-231-8191 using the conference ID 8497077. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/2x5yxT1. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

ABOUT CROWN

Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and 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 also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term 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.

FORWARD-LOOKING STATEMENTS

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 in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the alternative financial market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated capital deployments and the timing thereof, and Crown’s future cash flow and shareholder value. 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. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. 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.

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CALGARY, November 7, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced that its Board of Directors has declared a dividend of $0.13 per common share, payable on December 1, 2017 to all shareholders of record as of the close of business on November 17, 2017.

This dividend is designated by the Company to be an “eligible dividend” pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial or territorial legislation pertaining to eligible dividends. Shareholders with questions regarding the tax treatment of dividends should consult with their own tax advisors.

ABOUT CROWN

Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and 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 also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term 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.

FORWARD-LOOKING STATEMENTS

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 in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding Crown’s dividend and future increases to the dividend. 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 Annual Information Form for a detailed discussion of the risk factors affecting Crown. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. 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.

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CALGARY, November 3, 2017 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today provided an update on the restructuring of Petrowest Corporation (“Petrowest”) (TSX:PRW). Crown Capital Fund IV, LP (“Crown IV LP”) and a syndicate partner have a total of $27 million of loans outstanding to Petrowest, $25 million of which is due to Crown IV LP. Crown has an effective interest of approximately 36.5% in Crown IV LP.

Since the application for receivership on August 15, 2017 and appointment of Ernst & Young Inc. (“EY”) as court-appointed receiver, substantially all the assets of Petrowest have been prepared for sale or monetized. In relation to the sale and/or sale process, the Court of Queen’s Bench of Alberta approved the following:

• RBee Aggregate Consulting Ltd. (“RBee”), a newly established company owned by Crown IV LP and management of the operations of RBee Crushing, will acquire Petrowest’s Civil division as a going concern. The total consideration offered is $29.0 million, which includes the assumption of approximately $17.3 million of Crown IV LP’s loans to Petrowest, subject to closing adjustments. The balance of the consideration will be funded with third-party bank debt. The collective investment of Crown IV LP and its syndicate partner in RBee will comprise a combination of a 50% equity interest in RBee with a cost base of $5 million and a $12.3 million interest-bearing, second-lien loan;
• RBee has made a bid to acquire Petrowest’s Rental division as a going concern. The total consideration offered is $3.6 million, which includes the assumption of $2.2 million of Crown IV LP and its syndicate partner’s loans to Petrowest. The balance of the consideration will be funded with third-party bank debt;
• Timber Pro Logging Ltd. will acquire Petrowest’s Cutbank transportation division as a going concern for an undisclosed price; and
• Century Services Corp. has made a bid for substantially all Petrowest’s equipment from discontinued operations. The cash consideration offered is $18.8 million.

Proceeds from the above transactions, combined with the collection of general accounts receivable and sale of smaller assets, is expected to generate net proceeds in the range of $60 million to $70 million, of which approximately 90% of the low end of the range has been confirmed by completed sales and/or guaranteed bids.  Using the low end of the range, net of professional fees, priority payables and payments to the senior bank syndicate, Crown IV LP expects to recover, through its ownership interest in and loans to RBee and from other cash proceeds on the sale of Petrowest’s assets, the full amount of its outstanding loans to Petrowest.

“We’re delighted to be proceeding with the acquisition of the Civil division in partnership with RBee management. RBee is a well-run operation with a long history of profitability,” said Chris Johnson, President and CEO of Crown. “We are hopeful RBee’s bid for the Rental division is also successful.”

ABOUT CROWN

Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and 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 also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term 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.

FORWARD-LOOKING STATEMENTS

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 in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding Crown’s ability to recover its investment in Petrowest or to acquire the Petrowest Civil and Rental divisions. 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 Annual Information Form for a detailed discussion of the risk factors affecting Crown.

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