Monthly Archives: June 2018

New fund will capitalize on demand for lower-cost, reliable electricity supply
Provides significant new market and growth opportunity for Crown  

CALGARY, June 28, 2018 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the launch of Crown Capital Power LP (“Crown Power” or “the Fund”), a new fund managed by Crown that intends to provide investors with attractive, utility-like income through the direct ownership of Integrated Energy Platforms (“IEPs”) that provide electricity under long-term contracts to mid to large-scale electricity users, such as manufacturers, hotels, and condominiums. IEPs are on-site generators that provide more reliable and less expensive electricity than comparable service from a public utility.

“Over the past 10 years, commercial electricity users, especially in Ontario, have experienced substantial price increases and prices are expected to continue rising,” said Chris Johnson, President and CEO of Crown. “Because electricity is vital to businesses, and the rate increases have become so significant, there is growing demand for ‘private utility’ solutions. From an investment perspective, we see a tremendous opportunity to build a portfolio of long-term contracts with profitable, well-established businesses that will deliver investors attractive utility-like monthly recurring cash flows.”

The Fund’s primary initial target market will be Ontario, where electricity prices have nearly doubled over the past 10 years, far outpacing electricity price growth in North America. Over time, the Fund expects to target numerous other regions in North America that are experiencing similarly high electricity prices.

Crown Power will partner with experienced operators to manage the sales, installation and servicing of the IEPs. The Fund’s first operating partner is OOM Energy Group (“OOM”), a private electricity generation company that offers clients an alternative to the public utility grid. OOM provides its clients with reliable, uninterrupted power, essentially replacing the utility and removing the burden of managing energy supply, while providing significant savings. OOM and its principals have built, operated and maintained over 40 IEPs for industrial, commercial and institutional operations, ranging in size from 50 kWs to 40 MWs.

Mr. Johnson added: “As early entrants to this private utility market, the team at OOM has established a solid reputation and significant expertise in the deployment of IEPs, validating their ability to meet commercial customers’ energy needs with no downtime, while delivering material savings. We’re delighted to partner with OOM as they execute on signed contracts and continue to build a significant pipeline of new projects.”

Crown is initially committing $15.0 million of capital to Crown Power, which will be used to finance the near-term deployment of eight IEPs. Crown expects to utilize its hybrid business model to raise additional capital for Crown Power as needed.

About Crown Capital Partners

Crown (TSX:CRWN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies. 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.

For further information, please contact:
Craig Armitage
Investor Relations
craig.armitage@crowncapital.ca
(416) 347-8954

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 using 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 outlook for Crown Power. 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. 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, June 20, 2018 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the full repayment by Petrowest Corporation (“Petrowest”) of a special situations loan made by Crown Capital Fund IV, LP (“CCF IV”), an investment fund managed by Crown and in which Crown holds a 36.5% interest.

CCF IV advanced $15 million to Petrowest in September 2015. As part of a financial restructuring, CCF IV and a syndicate partner advanced an additional $12 million to Petrowest in May 2017.  Petrowest was placed into receivership by its creditors in August 2017 and all of Petrowest’s assets were offered for sale.

In November 2017, as consideration for the acquisition of the assets of the Civil division from Petrowest, approximately $19.6 million of the loan was assumed by RBee Aggregate Consulting Ltd. (“RBee”). RBee, which has one of the largest mobile crushing fleets in Western Canada, is now 50% owned by the management of RBee and 50% owned by CCF IV and its syndicate partner.

As at March 31, 2018, the total amount owing by Petrowest to CCF IV and its syndicate partner included $7.4 million of loan principal as well as accrued interest and fees. Subsequent to quarter end, approximately $0.8 million of loan principal was reallocated from the RBee loan to the Petrowest loan due to final adjustments to the purchase price of the RBee assets, resulting in an outstanding principal amount owing by Petrowest to CCF IV and its syndicate partner of $8.2 million.

Since March 31, 2018, CCF IV and its syndicate partner have received aggregate payments in respect of the Petrowest loan of $9.7 million representing full repayment of the principal amount owing, as well as all accrued interest and supplemental fees.

The realized Gross IRR on CCF IV’s aggregate investment in Petrowest was 18.2%.

“We are pleased with our team’s effort to recover the full investment in the Petrowest loan. While the liquidation of a company is a disappointing and unfortunate outcome for all involved, we remain committed to delivering superior results for our shareholders and investment partners,” said Chris Johnson, President and CEO of Crown. “Separately, RBee is performing well, with strong customer demand resulting in high utilization and favourable operating margins.”

About Crown 

Crown (TSX:CRWN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies. 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.

For further information, please contact:
Craig Armitage
Investor Relations
craig.armitage@crowncapital.ca
(416) 347-8954

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 using 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 outlook for RBee. 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. 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, Alberta – (June 13, 2018) — Crown Capital Partners Inc. (“Crown” or the “Company”) (TSX: CRWN) announced today that it has closed its previously announced “bought deal” public offering of $20 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures (the “Debentures”) due June 30, 2023 (the “Offering”). The Debentures will trade on the Toronto Stock Exchange under the symbol “CRWN.DB”.

The Offering was co-led by BMO Capital Markets and National Bank Financial Inc. and included AltaCorp Capital Inc., CIBC World Markets Inc., Cormark Securities Inc., GMP Securities L.P., Raymond James Ltd. and TD Securities Inc.

The net proceeds of the Offering will be used to repay indebtedness under the Company’s credit facility, which will then be available to be drawn, as required, to fund new financing transactions by the Company.

About Crown

Crown (TSX:CRWN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies. 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.

For further information, please contact:

Craig Armitage

Investor Relations

craig.armitage@crowncapital.ca

(416) 347-8954

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 using 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 use of proceeds of the Offering. 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. 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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