Aleksandar

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

CALGARY, June 16, 2021 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced its intention to commence a substantial issuer bid (the “Offer”) pursuant to which the Corporation will offer to purchase for cancellation up to 1,800,000 of its outstanding common shares (the “Shares”) at a purchase price of $5.50 per Share in cash (the “Purchase Price”). The Corporation will fund the Offer using cash on hand and available credit facilities.

The closing price of the Shares on the Toronto Stock Exchange (the “TSX”) on June 15, 2021, the last full trading day prior to the Corporation’s announcement of its intention to make the Offer, was $5.25.

The board of directors of the Corporation (the “Board”) believes that the recent trading price of the Shares is not fully reflective of their intrinsic value based on the value of Crown’s assets and its business and future prospects. Accordingly, the Board believes that the Offer is a prudent use of the Corporation’s financial resources given the Corporation’s business profile and assets, the current market price of the Shares and the Corporation’s cash requirements. The Board also believes that there is currently interest from shareholders of the Corporation (“Shareholders”) for improved liquidity in respect of the Shares and that the Offer will provide Shareholders with the option to access liquidity. The Offer provides Crown with the opportunity to return up to $9,900,000 million of capital to Shareholders who elect to tender while at the same time increasing the proportionate Share ownership of Shareholders who elect not to tender.

The decision to pursue the Offer is consistent with the Corporation’s stated intention to reduce the amount of capital deployed in its alternative lending portfolio and to return a portion of this capital to Shareholders, while also investing in new growth initiatives such as its Network Services and Distributed Power businesses.

The Purchase Price represents a 6.69% premium over the 30-day volume weighted average closing price of the Shares on the TSX for the period ending on June 15, 2021, and a 4.76% premium over the closing price of the Shares on the TSX on June 15, 2021, the last full trading day prior to the Corporation’s announcement of its intention to make this Offer. The number of Shares subject to the Offer represents approximately 20% of the total number of Shares outstanding.

Details of the Offer, including instructions for tendering Shares to the Offer and the factors considered by the Board making its decision to approve the Offer, will be included in the formal offer to purchase and issuer bid circular and other related documents (the  “Offer Documents”), which are expected to be mailed to shareholders, filed with applicable Canadian Securities Administrators and made available free of charge on or about June 21, 2021 on SEDAR at www.sedar.com and on the Corporation’s website at https://crowncapital.ca/. Shareholders should carefully read the Offer Documents prior to making a decision with respect to the Offer. The Offer will not be conditional on any minimum number of Shares being tendered but will be subject to various other conditions that are typical for a transaction of this nature.

The Offer will expire at 5 p.m. Eastern time on July 27, 2021, unless terminated or extended by the Corporation. If more than 1,800,000 Shares are properly tendered to the Offer, the Corporation will take-up and pay for the tendered Shares on a pro-rata basis according to the number of Shares tendered, except that “odd lot” tenders (of holders beneficially owning fewer than 100 Shares) will not be subject to pro-ration. Assuming that 1,800,000 Shares are purchased pursuant to the Offer, the aggregate purchase price pursuant to the Offer will be $9,900,000.

The Board has obtained a valuation (the “Valuation”) from Evans & Evans, Inc. to the effect that, based on and subject to the assumptions and limitations stated in such opinion, as of March 31, 2021, the fair market value per Share falls within the range of $7.10 to $7.57 per Share. A copy of the Valuation will be included in the Offer Documents.

The Board has authorized the making of the Offer. However, the Board is not making any recommendation to any Shareholders as to whether to tender or refrain from tendering their Shares under the Offer. Shareholders are strongly urged to consult their own financial, tax and legal advisors and to make their own decisions whether to tender or to refrain from tendering their Shares to the Offer and, if so, how many Shares to tender. The Corporation was authorized by the TSX to purchase up to 600,000 Shares pursuant to a normal course issuer bid (the “NCIB”) that commenced on April 13, 2021 and expires on April 12, 2022. Since April 13, 2021, the Corporation has purchased 36,400 Shares through the NCIB. There will be no further purchases of Shares under the NCIB until after the expiry of the Offer or date of termination of the Offer. Under the Corporation’s prior normal course issuer bid that commenced on April 13, 2020 and expired on April 12, 2021, the Corporation purchased a total of 393,930 Shares at a volume-weighted average price of $4.09 for cancellation thereunder.

Any questions or requests for information may be directed to TSX Trust Company, as the depositary for the Offer, as follows:

North American Toll Free: 1-866-600-5869

Telephone: 416-342-1091

Facsimile: 416-361-0470

E-Mail: TMXEInvestorServices@tmx.com

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a leading specialty finance company currently operating in the alternative corporate finance, 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 the commencement of the Offer. 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

CALGARY, May 12, 2021 – 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 and Special Meeting of Shareholders held on May 12, 2021.

A total of 5,379,902 common shares, representing approximately 59.5% 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, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

For further information, please contact:

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

CALGARY, May 11, 2021 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced its financial results for the first quarter ended March 31, 2021. Crown’s complete financial statements and management’s discussion and analysis for the three-month period ended March 31, 2021 are available on SEDAR at www.sedar.com.

Q1 2021 Financial & Operating Highlights

• Total revenue increased to $14.0 million, compared with $6.4 million in Q1 2020, due mainly to higher network services revenue from WireIE Inc. and Galaxy Broadband Communications (“Galaxy”), which was acquired in Q3 2020, and to net gains on investments versus a net loss on investments in Q1 2020.
• Interest revenue decreased to $6.6 million, compared with $7.3 million in Q1 2020, as higher interest revenue earned by Crown Partners Fund and Crown Power Fund was offset by lower interest revenue from Crown’s on balance sheet investments (through Crown Private Credit Fund).
• Continued growth of the Network Services platform, revenue stream and operating profit. Network Services revenue increased to $6.4 million in Q1 2021 (45% of total revenue for the quarter), up from $5.7 million in Q4 2020.
• Adjusted Funds from Operations¹ increased to $4.5 million ($0.49 per basic share), compared with $4.2 million ($0.44 per basic share) in Q1 2020, due primarily to increased operating income from the Network Services segment, and to a higher level of realized gains.
• Net income improved to $1.4 million, compared with a net loss of $1.2 million in Q1 2020 and a net loss of $2.4 million in Q4 2020.
• Effective March 1, 2021, Crown acquired 100% of the common shares of PRC Stoney Creek Corp. and Penady (Stoney Creek) Ltd. (collectively “PSCC”) in exchange for non-cash consideration of $10.4 million, representing a portion of the amount owing in respect of the PenEquity Realty Corporation (“PenEquity”) loan outstanding. PSCC’s assets include entitlements to future cash flows in relation to the sale of its interest in a retail plaza plus adjacent land that is being developed by PenEquity.
• Total assets increased to $330.7 million at quarter-end, compared with $322.4 million as at December 31, 2020, due primarily to the acquisition of PSCC.
• Total equity at quarter-end increased to $82.2 million, or $9.10 per basic share, from $81.3 million, or $8.98 per share at year-end 2020, mainly reflecting the net income in Q1 2021.
• In its Distributed Power business, an additional project was completed and became operational, representing the fourth project generating lease interest revenue for Crown Power Fund. The fund has seven other projects under development, including six projects that are expected to become operational in Q2 2021.
• Consistent with its plan to reduce its capital allocation to loan-based investments, effective March 31, 2021, Crown reduced its interest in Crown Partners Fund from 38.8% to 36.5% through a sale of limited partnership units at a transaction price equal to net asset value for net proceeds of $4.4 million, which were received in April 2021 and applied as a partial repayment of the Crown Credit Facility.

“Fiscal 2021 is expected to be an important and active transition period for Crown, where we see meaningful scale increases in our Network Services and Distributed Power businesses and a substantial reduction in our lending portfolio, which will free up capital to return to shareholders and invest in new growth initiatives,” said Chris Johnson, President and CEO of Crown. “We are off to a solid start, highlighted by 11% sequential revenue growth and increased operating profitability from Network Services in the first quarter. We expect to augment organic growth with additional acquisitions in this area to add scale, new customers and capabilities, and geographic presence. Crown Power Fund is poised to see a meaningful increase in operational projects in the second quarter and we hope to build on than momentum during the year.”

“In our Alternative Lending business, we remain focused on maintaining the health of the portfolio while generating liquidity where possible as we reposition Crown’s balance sheet. Toward this end, we recently sold a small portion of our interest in Crown Partners Fund and we will continue to pursue opportunities to realize proceeds from this investment which we intend to use to support strategic growth opportunities and to rationalize our capital structure”.

Subsequent Events:

Since the end of Q1 2021:

• On April 9, 2021, Crown received approval to renew its normal course issuer bid for a 12-month period commencing on April 13, 2021 enabling Crown to repurchase up to 600,000 of its common shares, representing approximately 6.6% of its issued and outstanding shares as at March 31, 2021;
• Effective April 15, 2021, Crown acquired 100% of the common shares of PRC Barrie Corp., whose assets primarily comprise land located in Barrie, Ontario, in exchange for non-cash consideration of $2.7 million, representing a portion of the amount owing in respect of the PenEquity loan outstanding;
• Effective May 6, 2021, Crown acquired 100% of the common shares of Lumbermens Credit Group Ltd., an Ontario-based construction credit reporting company, in exchange for consideration of $1.6 million less indebtedness outstanding at the time of acquisition, comprised of $0.3 million of cash plus non-cash consideration representing a portion of the amount owing in respect of the Mill Street & Co. Inc. loan outstanding; and
• Effective May 7, 2021, Crown successfully refinanced its existing syndicated corporate credit facility by entering into a new, bilateral senior secured corporate credit facility with ATB Financial that represents a total commitment of up to $41.5 million, including a $30 million revolving credit facility with a three-year term that declines to $20 million at the end of 2021, an $8.0 million term facility that matures at the end of 2021, and a $3.5 million dedicated-purpose letter of credit facility. As a result, Crown once again satisfies the minimum excess working capital requirements under applicable securities law.

Q1 2021 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 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 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 2021 financial results at 8:30 a.m. ET on May 12, 2021. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial (416) 764-8659 or (888) 664-6392 using the conference ID 42757603. 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, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

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 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 10, 2021 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that it has entered into a new senior secured corporate credit facility (“Credit Facility”) of up to $41.5 million with ATB Financial (“ATB”). This facility replaces Crown’s previous $35.0 million credit facility, which had a maturity date of May 31, 2021. Crown will use the Credit Facility to fund investments, potential acquisitions and share repurchases and for general corporate purposes.

“We’re pleased to finalize a new credit facility with ATB, a long-time financial partner to Crown,” said Chris Johnson, Crown’s President & CEO. “This new facility supports our plans to invest in expanding our Network Services and Distributed Power businesses while we continue to transition our balance sheet, in particular reducing the amount of our capital at work in the alternative lending portfolio.”

The Credit Facility includes a $30.0 million revolving credit facility with a three-year term that declines to $20.0 million at the end of 2021, an $8.0 million term facility that matures at the end of 2021, and a $3.5 million dedicated-purpose letter of credit facility. The revolving credit facility provides financing at a variable interest rate based on Prime plus 275bps to 350bps, has a customary set of covenants, and is subject to extension annually.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co- invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

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 continued execution of its growth plan. 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 3, 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 to discuss its 2021 first quarter financial results on May 12, 2021 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.

Q1 2021 CONFERENCE CALL

DATE: Wednesday, May 12, 2021
TIME: 08:30 a.m. EST
DIAL IN NUMBER: (416) 764-8659 or (888) 664-6392
CONFERENCE ID: 42757603
REPLAY: (416) 764-8677 or (888) 390-0541 (replay code: 757603) Available until midnight (EST) May 19, 2021
WEBCAST: The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at this link.

VIRTUAL ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

DATE: Wednesday, May 12, 2021
TIME: 10:00 a.m. EST
WEBINAR: To register for the webinar, please visit: https://webinars.vantagevenues.com/crown-capital-agm-2021/ and complete the online form.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

For further information, please contact:

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

CALGARY, April 9, 2021 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX:CRWN), a capital partner to entrepreneurs and growth businesses, today announced that it has received approval from the Toronto Stock Exchange (the “TSX”) to renew its normal course issuer bid (“NCIB”) for a 12-month period commencing April 13, 2021.

The renewed NCIB will follow the current NCIB, which ends on April 12, 2021 and under which Crown purchased 393,430 shares at a volume-weighted average price per share of $4.09 up to April 8, 2021.

Under the terms of the renewed NCIB, Crown will have the right to purchase up to 600,000 of its common shares (the “Shares”) representing approximately 10% of the public float and approximately 6.6% of the 9,037,389 issued and outstanding Shares as at March 31, 2021. The number of Shares that can be purchased pursuant to the renewed NCIB is subject to a daily maximum of 1,291 Shares, which is 25% of 5,166 Shares (being the average daily trading volume for the Shares on the TSX for the six months ended March 31, 2021). Shares purchased by the Corporation pursuant to the renewed NCIB will be cancelled. Purchases made pursuant to the renewed NCIB will be made in the open market through the facilities of the TSX and alternative trading systems, if eligible. The renewed NCIB will commence on April 13, 2021 and remain in effect until the earlier of April 12, 2022, the termination of the renewed NCIB by Crown, and Crown purchasing the maximum number of Shares permitted under the renewed NCIB.

In conjunction with the renewal of the NCIB, Crown has entered into a renewed automatic share purchase plan (“ASPP”) with a designated broker to allow for the purchase of Shares under the renewed NCIB at times when Crown would ordinarily not be permitted to purchase Shares due to regulatory restrictions or customary self-imposed trading black-out periods.

Pursuant to the ASPP, before the commencement of any particular trading black-out period, Crown may, but is not required to, instruct the designated broker to make purchases under the renewed NCIB in accordance with the terms of the ASPP. Such purchases will be determined by the designated broker at its sole discretion based on purchasing parameters established by Crown prior to the trading black-out period in accordance with the terms of the ASPP and applicable TSX rules. The ASPP has been pre-cleared by the TSX and will be implemented effective April 13, 2021.

Outside of the pre-determined trading black-out periods, Shares may be purchased under the renewed NCIB based on the discretion of Crown’s management, in compliance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in computing the number of Shares purchased under the renewed NCIB.

In the opinion of the Corporation’s board of directors and senior management, the renewed NCIB provides Crown with the flexibility to utilize its capital to acquire Shares from time to time under the appropriate circumstances. At December 31, 2020, Crown’s total equity per basic common share was $8.98.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co- invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

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 future purchases of Shares. 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.

CALGARY, March 11, 2021 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced its financial results for the fourth quarter and year ended December 31, 2020. Crown’s complete financial statements and management’s discussion and analysis for the three- and 12-month periods ended December 31, 2020 are available on SEDAR at www.sedar.com.

2020 Financial & Operating Highlights

• Total revenue increased to $44.8 million, compared with $25.2 million in 2019, due mainly to higher network services revenue from the acquisitions of WireIE Holdings International (“WireIE”) and Galaxy Broadband Communications (“Galaxy”) and higher net gains on investments in 2020 versus 2019.
• Interest revenue totaled $27.7 million, compared with $28.3 million in 2019. Higher interest revenue earned by Crown Partners Fund and Crown Power Fund was offset by lower interest revenue from Crown’s on balance sheet investments (through Crown Private Credit Fund). As previously disclosed, Crown is actively reducing its lending portfolio and seeking to generate liquidity where feasible.
• Net loss and comprehensive loss of $13.3 million, compared with $0.2 million in 2019, which mainly reflects a provision for credit losses of $15.8 million that relates primarily to the loan in PenEquity Realty Corp, as previously disclosed, and a loss before income taxes of $4.9 million attributable to WireIE inclusive of depreciation and amortization expenses totaling $5.0 million.
• Adjusted Funds from Operations1 increased to $13.1 million ($1.40 per basic share), compared with $6.2 million ($0.65 per basic share) in 2019, due primarily to an improvement in net realized gains (losses) from investments in addition to a full quarter of operating income from Galaxy, partially offset by a lower level of interest and fee revenue.
• Total assets increased to $322.5 million at year-end, compared with $299.7 million as at December 31, 2019, due mainly to additional investments in distributed power equipment under development and a higher consolidated cash balance (2020 – $19.2 million).
• Total equity as at year-end decreased to $81.3 million, or $8.98 per basic share, from $97.5 million, or $10.38 per share at year-end 2019, mainly reflecting the net loss in 2020, as well as dividends paid to shareholders and share repurchases.
• Expanded the Network Services platform with the acquisition of Galaxy, an Ontario-based network services company that provides connectivity to remote and underserviced enterprise customers across Canada.
• Continued development of the Distributed Power business, with the addition of three new operating partners and construction of multiple projects, increasing the total number of projects in development or in operation to 11 at year end.
• Consistent with Crown’s plan to rationalize its capital structure, the Company acquired and cancelled 375,798 shares in 2020 under its Normal Course Issuer Bid.

Q4 2020 Financial & Operating Highlights

• Total revenue increased to $12.6 million from $10.3 million in Q4 2019, due mainly to higher network services revenue in the current period.
• Interest revenue totaled $6.3 million, compared with $7.0 million in Q4 2019. Higher interest revenue earned by Crown Partners Fund and Crown Power Fund was offset by lower interest revenue from Crown’s on balance sheet investments.
• Adjusted Funds from Operations1 was $3.0 million, compared with $3.6 million in Q4 2019.
• Net loss of $(2.4) million (Q4 2019 – net income of $1.1 million), or $(0.26) per common share (basic) (Q4 2019 – net income of $0.11 per share).
  • The net loss for the current period mainly reflects a net loss from WireIE of $2.5 million, including related depreciation expense of $1.1 million, a $0.9  million impairment charge relating to the carrying value of network services equipment decommissioned, and a $1.1 million charge for impairment of network services contracts.
• In the first full quarter following its acquisition, Galaxy contributed pre-tax operating income of $0.4 million in Q4 2020.
• Two additional distributed power projects with third-party Operating Partners were completed, became operational and are currently under lease arrangements and are generating lease interest revenue for Crown Power Fund.
• Crown Partners Fund received a full repayment of $5.5 million in relation to its loan to CCI Wireless and also received aggregate repayments of $1.3 million in relation to its loan to Ferus.

Management Commentary

“We faced an uncertain and challenging environment in 2020, particularly in our lending business,” said Chris Johnson, President and CEO of Crown. “Most of our portfolio companies maintained continuous operation and the majority have been largely unaffected by the pandemic. Unfortunately, our client PenEquity, a property management and real estate development company operating primarily in the retail sector, was at the epicenter of industries affected by the pandemic and they suffered a significant loss in value in their projects. We continue to work closely with PenEquity with a view of reestablishing the business and restoring value.”

“Our priority is maintaining the health of the portfolio while generating liquidity where possible, consistent with our plan to reduce lending activity, return capital to shareholders and invest in new growth initiatives. As we reposition Crown’s balance sheet, we continue to make progress on the development of our two primary growth platforms, Distributed Power and Network Services, both of which offer significant long-term opportunity for us as a direct investor and asset manager of capital pools. Our Galaxy acquisition has been a bright spot since the acquisition in late Q3 2020, and we will look to build this business organically while bringing further scale to the telecom platform through additional M&A activity.”

Q4 & FY2020 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 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 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 (with slide presentation) to discuss its Q4 2020 financial results at 11:00 a.m. EDT on March 11, 2020. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial (416) 764-8659 or (888) 664-6392 using the conference ID 57740930. 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, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and coinvests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

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 and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated 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, February 22, 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 to discuss its 2020 fourth quarter and full-year financial results on March 11, 2021 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. Crown will issue its financial results on the morning of March 11, 2021.

Q4 2020 CONFERENCE CALL & WEBCAST

DATE: Thursday, March 11, 2021
TIME: 11:00 a.m. EST
DIAL IN NUMBER: (416) 764-8659 or (888) 664-6392
CONFERENCE ID: 57740930
REPLAY: (416) 764-8677 or (888) 390-0541 (replay code: 740930) Available until midnight (EST) March 18, 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, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

For further information, please contact:

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

CALGARY, November 11, 2020 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced its financial results for the third quarter ended September 30, 2020. Crown’s complete financial statements and management’s discussion and analysis for Q3 2020 are available on SEDAR at www.sedar.com. 

Q3 2020 Financial & Operating Highlights

• Total revenue increased to $12.6 million from $8.0 million in Q3 2019, due mainly to higher net gains (losses) on investments in the current period and higher network services revenue. 
• Interest revenue totaled $6.9 million, compared with $7.5 million in Q3 2019. Higher interest revenue earned by Crown Partners Fund and Crown Power Fund was offset by lower interest revenue from Crown’s on balance sheet investments.  
• Adjusted Funds from Operations1 increased to $2.1 million, from $(0.3) million in Q3 2019. 
• Net loss of $(8.1) million (Q3 2019 – net income of $0.5 million), or $(0.87) per common share (basic) (Q3 2019 – net income of $0.05 per share). 
  • The net loss for the current period mainly reflects a $11.2 million provision for credit loss related to the loan in PenEquity Realty Corp., due primarily to a reduction in the collateral value of two of PenEquity’s three main development properties. 
• Net investment gains of $2.9 million were recognized (Q3 2019 – net investment loss of $2.0 million) including net unrealized gains of $3.6 million by Crown Partners Fund on its special situations investments.
• Total assets increased to $325.5 million at quarter-end, compared with $299.7 million at December 31, 2019, due mainly to additional investment in distributed power equipment under development and a higher cash balance ($17.9 million).
• Total equity as at September 30, 2020 decreased to $84.5 million, or $9.14 per basic share, mainly reflecting the provision for credit losses. 
• Crown Power Fund established a relationship with, and partial ownership in, an eighth operating partner that is focused on providing distributed power solutions on sustainable power projects to commercial end users across North America. 
• Expanded Network Services platform with the acquisition Galaxy Broadband Communications, an Ontario-based network services company that provides connectivity to remote and underserviced enterprise customers across Canada. 
• Crown received a partial repayment of $7.0 million in respect of its $10.0 million term loan to Mill Street & Co. Inc., and subsequent to September 30, 2020, Crown Partners Fund received early repayment by CCI Wireless of a $5.5 million special situations loan.
• Consistent with Crown’s plan to rationalize its capital structure, the Company acquired and cancelled 154,400 shares in the third quarter and 193,098 in the fiscal year to date under its Normal Course Issuer Bid.

“In the third quarter, we made further progress on the strategic priorities we outlined earlier in the year, including transitioning to a capital-light business,” said Chris Johnson, President and CEO of Crown. “We continued to reduce our lending portfolio and return capital to shareholders through the increased use of our normal course issuer bid. While the investment portfolio has generally performed well through the difficult economic conditions in 2020, unfortunately we had to take a sizeable loan loss provision on our PenEquity loan. Their business was affected by the sudden and severe impact to the retail environment as a result of COVID-19, which caused us to reduce our assessment of the value of two of their main development properties. Over the course of this 4-year loan, we received roughly 40% of our capital back through interest payments, and we will work diligently towards recovering the remainder of our investment. We see a reasonable path to achieving that over time.”      

“In addition to repositioning Crown’s balance sheet, we are focused on developing new revenue streams across all three investment platforms – Alternative Corporate Financing, Distributed Power and Network Services –where Crown can act both as a direct investor and asset manager of capital pools. In Crown Power Fund, we added an 8th operating partner in the third quarter, which will help us further build on the project pipeline that now stands at approximately $250 million. Another key highlight in the quarter was the acquisition of Galaxy – our second acquisition in Network Services. When combined with our existing WireIE operations, we move forward with additional scale and deeper technology and go-to-market capabilities to target the growing need for broadband connectivity to remote locations.” 

Q3 2020 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 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 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 (with slide presentation) to discuss its Q3 2020 financial results at 8:30 a.m. EDT on November 11, 2020. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial (416) 764-8659 or (888) 664-6392 using the conference ID 18516448. The webcast can be accessed at www.crowncapital.ca under Investor Relations or this link. 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, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

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 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