Monthly Archives: July 2021

CALGARY, July 29, 2021 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced it will host a conference call on August 13, 2021 at 11:00 a.m. ET to discuss its 2021 second quarter results and provide an update on operations and strategy. The event will be hosted by Chris Johnson, President and Chief Executive Officer, and Michael Overvelde, Chief Financial Officer. The live webcast will include a slide presentation.

Q1 2021 CONFERENCE CALL

DATE: Friday, August 13, 2021
TIME: 11:00 a.m. EST
DIAL IN NUMBER: (416) 764-8659 or (888) 664-6392
CONFERENCE ID: 85156119
REPLAY: (416) 764-8677 or (888) 390-0541 (replay code: 156119 #) Available until midnight (EST) August 20, 2021
WEBCAST: The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at this link.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a leading specialty finance company operating mainly in the distributed power and telecommunications infrastructure markets. We focus on alternative asset classes that require a specialized capital partner, and we aim to create long-term value by acting as both a manager of investment funds for institutional partners and as a direct investor in operating businesses serving these markets. For additional information, please visit crowncapital.ca

For further information, please contact:

Craig Armitage
Investor Relations
craig.armitage@crowncapital.ca
(416) 347-8954

CALGARY, July 28, 2021 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced the final results of its substantial issuer bid to purchase for cancellation up to 1,800,000 of its outstanding common shares (“Shares”) at a price of $5.50 per Share (the “Purchase Price”), for an aggregate purchase price not to exceed $9,900,000 (the “Offer”).  The Offer expired at 5:00 p.m. Eastern time on July 27, 2021.

In accordance with the terms and conditions of the Offer, the Corporation has taken up and paid for 559,854 Shares at the Purchase Price, for an aggregate cost of $3,079,197, excluding fees and expenses relating to the Offer.  After giving effect to the Offer, 8,439,635 Shares remain outstanding.

“We appreciate the patience and support of our shareholders as we continue to transition the business and execute on our strategy to reduce our investment in corporate financing transactions and increase operating earnings in our newer lines of business, which we believe is the best path to long-term earnings growth and value creation,” said Chris Johnson, President and CEO of Crown. “We have been active with previously established Normal Course Issuer Bids and will continue to use that vehicle to return capital to shareholders, consistent with our intent to pursue a capital-light business model.  Although the share price has increased approximately 15% compared with the volume weighted average price for the 30-day period prior to our announcement of the substantial issuer bid, we believe the share price does not accurately reflect the underlying value of the business.  Our objective through continued execution of our strategy is to eliminate the discount to underlying value.”

The Corporation has made payment for the Shares tendered and accepted for purchase by tendering the aggregate purchase price to TSX Trust Company, the depositary for the Offer (the “Depositary”), in accordance with the Offer and applicable laws and payment to the shareholders will be effected by the Depositary. Payment for Shares will be made in cash, without interest. Any Shares invalidly tendered or tendered and not purchased will be returned to the tendering shareholder promptly by the Depositary.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a leading specialty finance company operating in the distributed power and telecommunications infrastructure markets.  We focus on alternative asset classes that require a specialized capital partner, and we aim to create long-term value by acting as both a manager of investment funds for institutional partners and as a direct investor in operating businesses serving these markets. For additional information, please visit crowncapital.ca.

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 its plans to reduce capital allocated to alternative corporate financing and to redirect that capital toward strategic growth initiatives and the repurchase of shares through a normal course issuer bid. 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. 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.

For further information, please contact:

Craig Armitage
Investor Relations
craig.armitage@crowncapital.ca
(416) 347-8954

Accelerates Crown’s plans to redirect capital and focus on strategic initiatives 

CALGARY, July 13, 2021 – Crown Capital Partners Inc. (“Crown” or the “Company”) (TSX: CRWN) today announced the closing of the divestment of a majority stake in Crown Private Credit Partners Inc (“CPCP”), its alternative corporate financing business, and a portion of its investment in Crown Partners Fund.  This transaction accelerates Crown’s plans to redirect capital toward strategic initiatives that are consistent with the Company’s objectives announced in May 2020.   Crown will focus on expanding and scaling its growth platforms in its Network Services and Distributed Power businesses as well as returning capital to shareholders.  Crown management will provide a fulsome update on its strategy and operational progress concurrent with its Q2 2021 financial results conference call on August 13, 2021.

Transaction Highlights

• Crown will receive proceeds of approximately $16 million from the sale of a portion of its investment in Crown Partners Fund.  The transaction is being completed at 100% of the net asset value of Crown Partners Fund units, which approximates Crown’s carrying value.  Crown will retain a 28% ownership interest in Crown Partners Fund, compared with its current ownership interest of 36.5%.
• The ownership group of the purchasing entity, CPCP, reflecting Crown’s divestment of its majority stake, now includes Canadian Western Bank (“CWB”), Concentra Bank (“Concentra”), Mount Logan Capital Inc. (“MLC”) and certain management participants. Crown will retain a 12.5% minority interest in CPCP.  CPCP has nominal current value and the transaction will not have a meaningful earnings impact on Crown.
• Crown will retain 100% of the performance fees earned from the Crown Partners Fund, which had an accrued value of $7.2 million as at March 31, 2021. 
• Crown’s private lending clients, institutional limited partners and investment professionals will benefit from the continuity of Crown’s participation in CPCP as well as the addition of well-capitalized long-term financial sponsors. 
• Brent Hughes, Executive Vice-President, and Tim Oldfield, Senior Vice-President, Chief Investment Officer, will transition to CPCP.  Chris Johnson will continue as President and CEO of Crown and will become Chairman of CPCP and will have a minority ownership interest in CPCP, as will other management participants.  
• Various operating expenses are in the process of being reduced or eliminated further to align with the Company’s go-forward business plan.
• Crown’s independent directors considered other options to accelerate the reduction of capital deployed in alternative corporate financing and unanimously believe this transaction to be in the best interests of all stakeholders.

Management Commentary

“This transaction supports Crown’s transition to a capital-light business model,” said Chris Johnson, President and CEO of Crown. “We have worked with and alongside the new ownership group for many years, and believe this new structure will provide a superior platform for the benefit of our corporate clients, trusted institutional investors and investment professionals.  Leveraging the financial strength and capabilities of the CWB, Concentra and Mount Logan teams, the private credit business will be better positioned to expand and capitalize on our team’s leading investment track record.”

Mr. Johnson added: “For Crown, this transaction provides meaningful liquidity to support our strategic initiatives. We have seen particularly robust growth in revenue and operating earnings in our newer lines of business and we expect to augment organic growth with additional acquisitions to add scale, capabilities, and geographic presence.  Additionally, we will continue to return capital to shareholders through the previously established Normal Course Issuer Bid as well as the recently announced Substantial Issuer Bid.” 

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a leading specialty finance company operating in the distributed power and telecommunications infrastructure markets.  We focus on alternative asset classes that require a specialized capital partner, and we aim to create long-term value by acting as both a manager of investment funds for institutional partners and as a direct investor in operating businesses serving these markets. For additional information, please visit crowncapital.ca.

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 its plans to reduce capital allocated to alternative corporate financing and redirect that capital toward strategic growth initiatives, pursue additional acquisitions, and its plan to further reduce operating expenses. 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. 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.

For further information, please contact:

Craig Armitage
Investor Relations
craig.armitage@crowncapital.ca
(416) 347-8954