Aleksandar

CALGARY, March 16, 2023 – 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 to discuss its 2022 fourth quarter and full year financial results on March 21, 2023 at 11:30 a.m. EST. The call will be hosted by Chris Johnson, President and Chief Executive Officer, and Michael Overvelde, Chief Financial Officer.

Q4 2022 CONFERENCE CALL

DATE:                                      Tuesday, March 21, 2023

TIME:                                       11:30 a.m. EST

DIAL IN NUMBER:                (416) 764-8650 or (888) 664-6383

CONFERENCE ID:                  44386563

REPLAY:                                 (416) 764-8677 or (888) 390-0541 (playback code: 386563)

Available until midnight (EST) March 28, 2023

WEBCAST:                              The audio webcast can be accessed at www.crowncapital.ca under

Investor Relations or at  https://app.webinar.net/KWJxrnoZOBk

ABOUT CROWN CAPITAL PARTNERS (TSX: CRWN)

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

For further information, please contact:

Craig Armitage

Investor Relations

craig.armitage@crowncapital.ca

(416) 347-8954

CALGARY, February 8, 2023 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that it has entered an agreement for a new senior secured corporate credit facility of up to $43.5 million (“Credit Facility”) with Canadian Western Bank. This Credit Facility replaces Crown’s previous $23.5 million corporate credit facility.

The Credit Facility includes an amortizing term loan of $30.0 million, an operating loan of up to $10.0 million with availability subject to margin condition restrictions, and a letter of credit facility of $3.5 million. The term loan matures in five years and is comprised of an initial advance of $25 million plus $5 million to be advanced upon request by Crown prior to June 30, 2023. The Credit Facility provides financing at variable interest rates based on Prime Rate plus an applicable margin and includes customary covenants for an agreement of this nature.

“We’re pleased to finalize a new credit facility with Canadian Western Bank, a long-time financial partner to Crown,” said Chris Johnson, Crown’s President & CEO. “This new facility provides us with the necessary additional funding and flexibility to support the planned growth of our various operating businesses, including initiatives underway in our Network Services and Distribution Services operations.”

The Credit Facility will be used primarily to refinance existing senior debt and letters of credit, support the working capital and growth capital requirements of Crown and its operating businesses, and to fund Crown’s remaining capital commitment in respect of Crown Capital Power Limited Partnership.

About Crown Capital Partners (TSX:CRWN)

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

For further information, please contact:

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

CALGARY, February 2, 2023 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that its operating subsidiary Galaxy Broadband Communications, Inc. (“Galaxy”), entered into a multi-year deal to deliver OneWeb’s low Earth orbit (LEO) connectivity solutions across Canada, including the northern territory of Nunavut.  The full press release on the announcement from OneWeb and Galaxy can be found here.

Galaxy is an Ontario-based, satellite-focused network services company, providing connectivity to remote and underserviced enterprise customers across Canada. As one of OneWeb’s fastest growing distribution partners to date, Galaxy has already deployed to over 75 locations throughout Canada, meeting a range of customer needs and connecting anywhere from 30 to 800 users at each site.

Rick Hodgkinson, CEO and Founder of Galaxy Broadband Communications Inc., commented: “Galaxy is delighted to expand its business with OneWeb and secure the bandwidth vital to improve connectivity throughout Nunavut.  Access to broadband internet is an essential service that supports education, healthcare, commerce and general well-being.  There are numerous communities throughout Canada that do not have access to broadband internet, with the challenge in Nunavut being particularly acute as the Territory is 100% dependent on satellite connectivity services. OneWeb’s low earth orbit satellites will markedly improve connectivity in the Territory and is an important milestone for Nunavummiut. Galaxy’s roll-out of OneWeb services is underway with a target to have all 25 communities in Nunavut connected by the end of 2023.”

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 anticipated roll-out of OneWeb services. 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. 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.

About Crown Capital Partners (TSX:CRWN)

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

For further information, please contact:

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

 CALGARY, November 9, 2022 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN) today announced its financial results for the three and nine months ended September 30, 2022. Crown’s complete financial statements and management’s discussion and analysis are available on SEDAR at www.sedar.com. 

 Q3 2022 Financial & Operating Highlights 

 Network Services revenue was $7.5 million in Q3 2022, compared with $7.4 million in Q3 2021, and this segment contributed net income before income taxes of $1.1 million in Q3 2022, inclusive of depreciation and amortization expense totaling $1.2 million. The year-over-year revenue increase reflects growth in the volume of revenue under contract for enterprise customers of Galaxy and increased implementation of newer satellite telecommunications infrastructure. This growth was partly offset by year-over-year declines in the volume of revenue under contract with WireIE. 

• On June 24, 2022, Crown expanded and diversified its operations with the acquisition of Go Direct Global, which contributed revenue of $7.0 million in Q3 2022 and a net loss before income taxes of $(0.7) million, inclusive of depreciation and amortization expense totaling $0.9 million. Go Direct Global is entering a new phase of growth, and Crown expects it to be a profitable and growing operation going forward. 

• For Q3 2022, Crown’s share of earnings of Crown Partners Fund totaled $0.1 million and income distributions of Crown Partners Fund attributable to Crown totaled $0.6 million. 

• Crown Power Fund incurred total non-cash impairment charges of $3.6 million in Q3 2022, of which $1.6 million was attributable to Crown shareholders, in respect of (i) $0.3 million of certain distributed power equipment in order to reflect revised estimates of recoverable value based on recently available market prices; and (ii) $3.3 million of distributed power equipment under development and related deposits in order to reflect revised estimates of the recoverable value of one distributed power project under development. 

• Net loss was $2.1 million ($0.38 loss per basic share), compared with a net income of $0.8 million ($0.10 earnings per basic share) in Q3 2021. 

• Total equity at quarter-end decreased to $53.9 million, from $69.1 million at the end of Q4 2021, mainly because of share repurchases totaling $11.0 million and a net loss attributable to shareholders of $4.2 million in the year-to-date period. Total equity per share decreased to $9.56 per basic share from $9.74 as at December 31, 2021 but increased from $9.37 per share as at September 30, 2021. 

 Effective July 13, 2021, Crown began recognizing Crown Partners Fund as an investment in associate using the equity method rather than recognizing it as a subsidiary. As a result, many of our asset, liability, revenue and expense amounts as at and for the three and nine months ended September 30, 2022 are not directly comparable to equivalent balances for the prior-year period. 

“The third quarter was another successful period in the transformation of Crown to a capital-light company”, said Chris Johnson, President and CEO of Crown. “We continued to make good progress in our telecom operations and in the newly acquired e-commerce fulfilment and distribution company, Go Direct. Both Network Services and Distribution Services, which represented 95% of total revenue in the third quarter, are benefiting from long-term tailwinds and are well positioned for profitable growth. Separately, we continue to have line of sight on capital coming back from our remaining investments in the alternative lending portfolio, which will provide additional financial capacity and flexibility to support organic and inorganic expansion in 2 these main markets, as well as capital management priorities including repayment of our debentures and additional share buybacks, as we look out to 2023.” 

Q3 2022 Financial Results Summary

Conference Call & Webcast

Crown will host a conference call and webcast to discuss its Q3 2022 financial results at 11:00 a.m. ET on November 10, 2022. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial (647) 484-0475 or (888) 882-4478 using the conference ID 8931037. The webcast can be accessed at www.crowncapital.ca under Investor Relations. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected. 

About Crown Capital Partners (TSX:CRWN)

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

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, the network services market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated investment dispositions and capital deployments and the timing thereof, and Crown’s future earnings. 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. 

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 forwardlooking 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, the network services market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated investment dispositions and capital deployments and the timing thereof, and Crown’s future earnings. 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.

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

CALGARY, October 27, 2022 – 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 to discuss its 2022 third quarter financial results on November 10, 2022 at 11:00 a.m. EST. The call will be hosted by Chris Johnson, President and Chief Executive Officer, and Michael Overvelde, Chief Financial Officer.

Q3 2022 CONFERENCE CALL

DATE:                                      Thursday, November 10, 2022

TIME:                                       11:00 a.m. EST

DIAL IN NUMBER:                (647) 484-0475 or (888) 882-4478

CONFERENCE ID:                  8931037

REPLAY:                                 (647) 436-0148 or (888) 203-1112 (playback code: 8931037)

Available until midnight (EST) November 17, 2022

WEBCAST:                              The audio webcast can be accessed at www.crowncapital.ca under

Investor Relations or at https://app.webinar.net/zRldkRZk21Z

ABOUT CROWN CAPITAL PARTNERS (TSX: CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure, distribution services, and distributed power markets. We focus on growth industries 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, August 11, 2022 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN) today announced its financial results for the three and six months ended June 30, 2022. Crown’s complete financial statements and management’s discussion and analysis are available on SEDAR at www.sedar.com.

Q2 2022 Financial & Operating Highlights

• Network Services revenue was $6.4 million in Q2 2022, compared with $6.8 million in Q2 2021, and this segment contributed net income before income taxes of $1.0 million, versus $1.7 million in Q2 2021, inclusive of depreciation and amortization expense totaling $0.9 million. The year-over-year decrease reflects a modest reduction in revenues in the quarter, an increase in marketing-related activity, and a $(0.3) million expense recovery recognized in the prior-year period. Although revenues from this segment decreased year-over-year due to a combination of a repricing of select contracts and to a modest reduction
in the volume of revenue under contract, revenues were consistent with prior year levels on a year-to-date basis.

• For Q2 2022, Crown’s share of earnings of Crown Partners Fund totaled $0.3 million, including $(0.1) million in respect of its general partnership interest as a result of a reduction in the accrued performance bonus payable to Crown by Crown Partners Fund and $0.4 million in respect of its limited partnership interest.

• Net income was $0.5 million ($0.08 earnings per basic share), compared with a net loss of $(0.3) million ($0.03 loss per basic share) in Q2 2021.

• Total equity at quarter-end decreased to $56.0 million, from $69.1 million at the end of Q4 2021, mainly because of share repurchases totaling $11.0 million and a net loss attributable to shareholders of $2.1 million in the year-to-date period. Total equity per share increased to $9.93 per basic share from $9.74 as at December 31, 2021 and $9.05 per share as at June 30, 2021.

• Crown announced that its subsidiary, Community Network Partners Inc. (“CNPI”), was selected as an Internet Service Provider under the Ontario Connects: Accelerated High Speed Internet Program. The aim of the program is to make reliable, high-speed internet connectivity available to every region in Ontario by
the end of 2025. The maximum subsidy available to CNPI under this program is approximately $150 million, which is expected to be a material proportion of the network cost.

• Crown expanded and diversified its operations with the acquisition, on June 24, 2022, of a 100% equity interest in Go Direct Global, an e-commerce fulfillment and distribution company, which contributed earnings before income taxes of $0.1 million in Q2 2022. Through its management of an investment fund
that previously owned Go Direct Global, Crown has a long history with, and a deep understanding of, this business which is entering a new phase of growth.

Effective July 13, 2021, Crown began recognizing Crown Partners Fund as an investment in associate using the equity method rather than recognizing it as a subsidiary. As a result, many of our asset, liability, revenue and expense amounts as at and for the three and six months ended June 30, 2022 are not directly comparable to equivalent balances for the prior-year period.

Management commentary: “Our Network Services business continues to perform well and is particularly well positioned for growth given the demand for enhanced broadband connectivity in rural and remote locations. The recent contract award under the Ontario Connects program is an important catalyst, and we are pursuing additional avenues of organic and inorganic growth to add scale and diversification to this operating segment. With the acquisition of Go Direct Global in the quarter, we have added a growing and profitable operating business providing end-to-end integrated e-commerce fulfillment and distribution services. This gives us a foothold in a new market – distribution services – where we see attractive long-term growth potential.

Q2 2022 Financial Results Summary

Conference Call & Webcast

Crown will host a conference call and webcast to discuss its Q2 2022 financial results at 8:30 a.m. ET on August 12, 2022. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial (647) 484-0475 or (888) 220-8474 using the conference ID 1883356. The webcast can be accessed at www.crowncapital.ca under Investor Relations. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure, distribution services, and distributed power markets. We focus on growth industries 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 forwardlooking 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, the network services market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated investment dispositions and capital deployments and the timing thereof, and Crown’s future earnings. 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 forwardlooking 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

CALGARY, July 28, 2022 – 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 to discuss its 2022 second quarter financial results on August 12, 2022 at 8:30 a.m. EST. The call will be hosted by Chris Johnson, President and Chief Executive Officer, and Michael Overvelde, Chief Financial Officer.

Q2 2022 CONFERENCE CALL

DATE:                                      Friday, August 12, 2022

TIME:                                       8:30 a.m. EST

DIAL IN NUMBER:                (647) 484-0475 or (888) 220-8474

CONFERENCE ID:                  1883356

REPLAY:                                 (647) 436-0148 or (888) 203-1112 (playback code: 1883356)

Available until midnight (EST) August 19, 2022

WEBCAST:                              The audio webcast can be accessed at www.crowncapital.ca under

Investor Relations or at https://app.webinar.net/VNKnLdnPB2Y

ABOUT CROWN CAPITAL PARTNERS (TSX: CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure and distributed power markets. We focus on growth industries 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, May 11, 2022 – In accordance with Toronto Stock Exchange requirements, Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, announced the voting results from its Annual Meeting of Shareholders held on May 11, 2022.

A total of 3,129,236 common shares, representing approximately 55.5% of the Corporation’s issued and outstanding common shares, were voted in connection with the meeting. Shareholders voted in favour of all items of business put forth. The votes for the election of directors are as follows:

Crown has filed a report of voting results on all resolutions voted on at the meeting under the Company’s profile on SEDAR at www.sedar.com.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure and distributed power markets. We focus on growth industries 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:

CALGARY, May 10, 2022 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN) today announced its financial results for the first quarter ended March 31, 2022. Crown’s complete financial statements and management’s discussion and analysis are available on SEDAR at www.sedar.com.

Effective July 13, 2021, Crown stopped recognizing Crown Partners Fund as a subsidiary and began recognizing it as an investment in associate using the equity method. As a result, many of our asset, liability, revenue and expense balances as at and for the three months March 31, 2022 are not directly comparable to equivalent balances for the prior period.

Q1 2022 Financial & Operating Highlights

• Continued growth of the Network Services revenue stream and operating profit. Network Services revenue increased to $6.7 million in Q1 2022, up from $6.4 million in Q1 2021. This segment generated net income before income taxes of $1.3 million in Q1 2022, inclusive of depreciation and amortization expenses totaling $0.9 million, up from net income before income taxes of $1.1 million in Q1 2021. The year-over-year improvement is attributable to continued growth in the profitability of Galaxy.
• For Q1 2022, Crown’s share of losses of Crown Partners Fund totaled $(4.4) million, including $(2.5) million in respect of its general partnership interest as a result of a reduction in the accrued performance bonus payable to Crown by Crown Partners Fund and $(2.0) million in respect of its limited partnership interest. This loss was primarily the result of a provision for expected credit loss from a single loan investment which more than offset income from other investments of Crown Partners Fund and was partially offset by a performance bonus recovery of $1.2 million.
• Adjusted Funds from Operations¹ of $0.8 million ($0.12 per basic share) in Q1 2022, down from $4.5 million ($0.49 per basic share) in Q1 2021. Compared with the prior-year, amounts included in respect of the Company’s interest in Crown Partners Fund declined due to the derecognition of the fund as a subsidiary and to the inclusion in the current-year period of a loss recognized in respect of its general partnership interest. The aggregate impact of this was only partially offset by an increase in Adjusted Funds from Operations attributable to the Network Services business.
• Net loss of $(2.6) million ($0.38 loss per basic share), compared with a net income of $1.3 million ($0.14 earnings per basic share) in Q1 2021, reflecting Crown’s share of losses of Crown Partners Fund.
• Total equity at quarter-end decreased to $55.6 million, from $69.1 million at the end of Q4 2021, mainly because of share repurchases totaling $11.0 million and a net loss attributable to shareholders of $2.6 million. Total equity per share increased to $9.85 per basic share from $9.74 as at December 31, 2021 and $9.07 per share as at March 31, 2021.
• In Q1 2022, Crown purchased and subsequently cancelled a total of 1,450,556 Common Shares pursuant to its normal course issuer bid and to a substantial issuer bid (“SIB”), for aggregate consideration of $11.0 million. Over the 12 months ended March 31, 2022, Crown has repurchased for cancellation a total of 3,394,843 Common Shares at an aggregate cost of $24.6 million, representing 38% of Common Shares outstanding as at March 31, 2021.
• During the quarter, Crown advanced an additional $1.8 million to Go Direct Global, a fulfillment and distribution company, increasing the balance of the demand loan to $3.5 million. Crown intends to acquire an equity interest in Go Direct Global during fiscal 2022.
• Subsequent to quarter end, Crown announced that its subsidiary, Community Network Partners Inc. (“CNPI”), was selected as an Internet Service Provider under the Ontario Connects: Accelerated High Speed Internet Program. The aim of the program is to make reliable, high-speed internet connectivity available to all premises in Ontario by the end of 2025. The maximum subsidy available to CNPI under this program is approximately $150 million, which is expected to be a material proportion of the network cost.

Management commentary: “Our results for the first quarter were again highlighted by solid performance from our Network Services business. This segment is well positioned to continue to benefit from positive long-term demand for enhanced broadband connectivity in rural and remote locations, as evidenced by the recent contract award to support the important Ontario Connects program” said Chris Johnson, President and CEO of Crown. “Consistent with our plan to transition the balance sheet, we closed our third SIB in the first quarter and exited the period with a greatly reduced share count and higher book value per share. We will continue to look for investment opportunities to build further scale in key operating segments and in new ones like Go Direct Global where we see compelling growth potential.”

Q1 2022 Financial Results Summary

¹ Adjusted Funds from Operations is not a measure of financial performance (nor does it have a standardized meaning) under IFRS. In evaluating this measure, investors should consider that the methodology applied in calculating these measures might differ among companies and analysts. The Corporation has provided a reconciliation of income (loss) before income taxes to Adjusted Funds from Operations in this news release. We believe that Adjusted Funds from Operations is a useful supplemental measure in the context of Crown’s specialty finance and network services focus to assist investors in assessing the cash anticipated to be generated by Crown’s business, including cash received in relation to its various revenue streams, that is attributable to Shareholders. Adjusted Funds from Operations should not be considered as the sole measure of Crown’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Corporation’s financial statements.       

Conference Call & Webcast

Crown will host a conference call and webcast to discuss its Q1 2022 financial results at 8:30 a.m. ET on May 11, 2022. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial (647) 794-4605 or (888) 254-3590 using the conference ID 2836624. The webcast can be accessed at www.crowncapital.ca under Investor Relations. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected. 

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure and distributed power markets. We focus on growth industries 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 the alternative financial market, the network services market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated investment dispositions and capital deployments and the timing thereof, and Crown’s future earnings. 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.

For further information, please contact:

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

CALGARY, May 9, 2022 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN) today announced that its subsidiary, Community Network Partners Inc. (“CNPI”), has been selected as an Internet Service Provider (“ISP”) under the Ontario Connects: Accelerated High Speed Internet Program.  The aim of the program is to make reliable, high-speed internet connectivity available to all premises in Ontario by the end of 2025.

Under the Ontario Connects program, the Government of Ontario has committed nearly $4 billion to connect every region in Ontario to reliable, high-speed internet by the end of 2025.  This is the largest single investment in high-speed internet, in any province, by any government in Canadian history.  This investment will help ensure that every household and business, in every community, has access to the digital world.

Crown subsidiaries provide network connectivity to municipal, commercial and residential end users in otherwise underserviced markets.  In connection with this program, CNPI will design, construct, own and operate a broadband network that will deliver high-speed internet to residential and business customers in select service areas in Northern Ontario.  The contract available to CNPIs under the program is approximately $150 million, which is expected to be a material proportion of the network cost and will bring service to approximately 9,400 households. CNPI expects to immediately commence design and construction and anticipates completion before the end of 2025.

“Access to reliable, high-speed connectivity is essential for living, learning and thriving in today’s digitally connected world.  We’ve been working vigorously to resolve the digital divide for Canadians living in remote and rural regions, and we’re delighted to be part of the Government of Ontario’s transformational program to make this goal a reality for all Ontarians,” said Chris Johnson, President and Chief Executive Officer.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure and distributed power markets. We focus on growth industries 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