ralphs

About Ralph Sanchez

This author has not yet filled in any details.
So far Ralph Sanchez has created 139 blog entries.

Crown Capital Partners Announces Repayment of Loan by Touchstone Exploration

Crown Capital Partners Announces Repayment of Loan by Touchstone Exploration

CALGARY, June 15, 2020 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced the full repayment by Touchstone Exploration Inc. (“Touchstone”) (TSX: TXP) of a loan managed by Crown.

Touchstone is a Calgary-based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. In November 2016, Crown Capital Partner Funding, LP (“Crown Partners Fund”) provided a $15.0 million, 60-month term loan to Touchstone. The term loan was later increased to $20.0 million and the maturity was extended to November 2023. The arrangement also included a production payment agreement (maturing October 31, 2023), entitling Crown Partners Fund to a quarterly payment of 1.33% of Touchstone’s gross revenue from production.

“The Touchstone team has done an outstanding job executing its growth plan during a generally challenging period for the oil and gas industry, benefiting from a low-cost production model and an increasing focus on natural gas,” said Chris Johnson, President and CEO of Crown. “With a new senior loan facility in place with a Trinidadian bank, the company is in a solid financial position and we wish them continued success.”

Paul Baay, President and Chief Executive Officer of Touchstone, said: “Crown Capital has been a longstanding and supportive financial partner for our business, providing us the capital and flexibility to focus on the development of our onshore Trinidad assets and pursue our other operational priorities.”

Touchstone has prepaid the loan in full, including principal, interest and fees. The loan was held by Crown Partners Fund, an investment fund managed by Crown and in which Crown holds an approximate 39% interest. The production payment agreement will remain in place and will provide Crown Partners Fund with quarterly payments until October 31, 2023.

The Gross IRR to date on Crown Partners Fund’s investment in Touchstone is 16%, inclusive of the estimated current value of the production payment agreement.

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 forward-looking terminology such as “may”, “will”, “expect”, “intend”,
“estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. 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.

For further information, please contact:
Craig Armitage
Investor Relations
[email protected]
(416) 347-8954

 Download (pdf) 177 KB

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Capital Partners Announces Repayment of Loan by Touchstone Exploration2020-06-15T20:56:46+00:00

Crown Capital Partners Announces Q1 2020 Financial Results, Strategic Update and Suspension of Dividend

CALGARY, May 5, 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 first quarter ended March 31, 2020. Crown’s complete financial statements and management’s discussion and analysis for Q1 2020 are available on SEDAR at www.sedar.com.

Q1 2020 Financial & Operating Highlights

  • Interest revenue was $7.3 million, compared with $8.0 million in Q1 2019.
  • Total revenue increased to $6.4 million, compared with $(4.0) million in Q1 2019 due mainly to a significant decrease in the net loss on investments, from $(13.5) million in Q1 2019 to $(3.2) million in Q1 2020.
  • Adjusted Funds from Operations1 increased to $4.2 million, representing the highest quarterly amount in the past eight quarters, compared with $0.7 million in Q1 2019.
  • Net loss of $(1.2) million (Q1 2019 – net loss of $4.0 million), or $(0.13) per common share (basic) (Q1 2019 – net loss of $0.41 per share). The net loss for the current period mainly reflects a net unrealized loss on investments of $3.6 million from reductions in the fair values of investments of Crown Partners Fund.
  • Total assets increased to $338.0 million at quarter-end, compared with $299.7 million at December 31, 2019, due mainly to new loan advances in the quarter.
  • On March 27, 2020 Crown paid a quarterly dividend of $0.15 per common share.
  • Crown Power Fund commenced construction on two new distributed power projects, increasing
    the total number of projects in development or in operation to 11.
  • Crown Partners Fund advanced the remaining $6.1 million to VIQ Solutions available under the $15.0 million loan facility established in 2018.
  • Crown Partners Fund announced two transactions for up to $35.5 million:
    • A five-year term loan of up to $30 million to Centric Health Corporation, of which $22 million has been advanced.
    • A two-year, $5.5 million term loan with CCI Wireless.

“Since our fiscal 2019 results were announced in March, we have adapted our operations to address the COVID-19 pandemic. Our business continuity plan enabled us to seamlessly operate from remote locations and ensure the health and safety of the team,” said Chris Johnson, President and CEO of Crown. “This is a rapidly evolving environment which creates considerable uncertainty for Crown and our borrowers. While we expect most companies will be affected to some degree and will be required to adapt, the portfolio is currently in stable condition overall and we remain highly diligent in our portfolio management. There is an ‘all-weather’ aspect to our investment strategy that served us well through the 2008 global financial crisis.”

“Crown’s management team has extensive experience analyzing and assessing value of businesses of all types. We believe that the public markets are not reflecting a fair value for Crown’s business and do not provide ready access to capital,” added Mr. Johnson.  “In addition to the structural challenges facing almost all small-cap companies, alternative lenders are trading at persistently high discounts to their underlying asset values. Over a 4-year period, Crown has traded at an average price-to-book multiple of 0.85 times, a 15% discount. Currently Crown’s common shares currently trade at less than 50% of its $10.05 book value as at March 31, 2020. The status quo is not acceptable and while this is not a new realization for our management team, the current environment has led us to accelerate a repositioning of the Corporation’s balance sheet to be more capital efficient.”

“As we undergo this transition, we’ve made the decision to suspend shareholder dividends. Our focus is on increasing earnings per share over the medium to long term, and we believe in light of the current market realities, funds available for distribution will be more impactful for shareholders to be used for strategic investments and share buybacks.”

“We’re optimistic about the future. While we expect a significant and sustained economic recession, past experience suggests economic crisis creates opportunity for alternative finance providers.  Quality businesses need capital and traditional providers often retreat in times of uncertainty. Additionally, our team strongly believes that through the repositioning of the balance sheet described below, we will emerge as a much more profitable, diversified finance platform with a larger market opportunity.”

Update on Operations

Alternative Corporate Financing Investments

At March 31, 2020, our Alternative Corporate Financing investments stood at $275.4 million, including Special Situations Financing investments of $240.4 million and Long-Term Financing investments of $35.0 million. Our Special Situations Financing investments are managed through Crown Partners Fund, in which Crown holds an approximate 39% interest.

We are actively monitoring the impact of the COVID-19 pandemic and the related economic impacts on the health of our portfolio companies. The current environment is a rapidly evolving situation which creates uncertainty for us and our borrowers. All our portfolio companies will be affected with some of them being forced to take aggressive measures to adapt. The duration and impact of this pandemic are unknown at this time, and the longer the situation continues, the more uncertainty there will be regarding the business, operations, financial condition and/or underlying security value of our borrowers. We presently believe the impacts of the current situation will not result in the failure of any of our borrowers and will likely have only a minimal impact on their ability to make payments to Crown. In addition, while there is increased volatility in global oil markets, Crown’s energy clients have substantial natural gas exposure, which is expected to provide a measure of stability to these companies.

We believe the market instability caused by the COVID-19 pandemic will result in a further weakening of the credit cycle and, ultimately, a net increase in investment opportunities in our Special Situations Financing segment when corporate lending transaction activity returns to normal levels. We continue to believe Crown Partners Fund will grow to $500 million in assets over time.

Distributed Power Investments

In our distributed power business, we remain focused on building assets in the Crown Power Fund and securing additional third-party funding commitments in the Crown Power Fund to finance additional projects. We do not presently see any material financial impacts of the COVID-19 pandemic on the financial performance of our power generation assets or opportunities. Rather, we expect that 2020 will be a year of accelerated growth. The pipeline of potential transactions, including prospective projects already in the planning stage, is vibrant and growing. We currently have ten power projects in development and one in operation. We expect these projects will increase revenue and operating cash flow to Crown Power Fund as they become operational in 2020. We also continue to build our base of operating partners. In March 2020, Crown Power Fund established a relationship with, and partial ownership in, an operating partner with a focus on providing distributed power solutions to the midstream energy sector in Alberta. Crown Power Fund now has six operating partners.

Crown’s Financial Position

While our fiscal 2019 earnings were affected by two anomalous events previously disclosed in our public filings, we continue to deliver budgeted Adjusted Funds from Operations (see definition under “Q1 2020 Financial Results Summary”), which we consider the best measure in assessing the cash generated by our business. We have a $35 million revolving line of credit with ATB Financial and Business Development Bank of Canada, of which we have currently drawn approximately $30 million. We believe Crown is modestly leveraged with debt representing roughly 27% of total assets, when we include our $20 million outstanding convertible debenture and the outstanding debt of Crown Partners Fund. We have no maturities until May 2021.

We continue to have capital available to fund opportunities as they arise.  Crown has access to up to $97 million to fund additional investments, including our working capital, committed capital from third parties, and undrawn amounts available under our credit facilities. We will also be pursuing additional capital from limited partner investors in both our special situations and distributed power funds in the near term.

Strategic Update

In response to Crown trading at a persistent discount to our underlying net asset value, we have been working to evolve our strategy and diversify our business. We have two main priorities:

  1. Develop new revenue streams that are both highly profitable and scalable where Crown can act both as a direct investor and asset manager of capital pools, such as distributed power; and
  2. Improve the efficiency of our use of capital by shifting to a capital-light business model. Our Alternative Corporate Financing investments, while they generate healthy interest income, are not being valued properly by the public markets. Capital is valuable and requires strategic purpose such as seeding new funds or lines of business. The vast majority of the funds required to grow can and should come from third parties who have a lower cost of capital than Crown.

Consistent with our plan to increase capital efficiency, we expect to lower our ownership position in Crown Partners Fund toward a target of 20% or less, from 39% currently. In addition, we are in the process of realization, at least in part, of our existing Long-term Financing investments. The proceeds from realizations will be used to pursue strategic opportunities and rationalize our capital structure. While we expect the unwinding and divestment of a portion of our Alternative Corporate Financing investments will create some near-term earnings volatility, we see this as necessary to effect the shift to a more capital-efficient business.

Suspension of Dividend

In 2019, we paid out to shareholders a total of $7.5 million, comprising $5.7 million of dividends and $1.8 million of share buybacks. In 2020, we expect to generate positive Adjusted Funds from Operations and to generate proceeds from realized investments, however, as we transition our business to be more capital efficient we will be suspending dividends. Our overriding objective is to achieve increased shareholder value and we believe that directing available funds to strategic opportunities and share buybacks, including our recently renewed Normal Course Issuer Bid program, will achieve higher shareholder returns than distribution of dividends.

Q1 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 to discuss its Q1 2020 financial results at 8:30 a.m. EDT on May 5, 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 37927017. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or https://bit.ly/3cPBnQD. 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
[email protected]
(416) 347-8954

CRWN Q1 2020 press release FINAL

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Capital Partners Announces Q1 2020 Financial Results, Strategic Update and Suspension of Dividend2020-05-12T17:59:31+00:00

Crown Capital Reports Voting Results from Annual and Special Meeting of Shareholders

CALGARY, May 5, 2020 – 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 5, 2020.

A total of 6,101,341 common shares, representing approximately 64.7% 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:

Motions% of Shares Voted For% of Shares Voted Withhold
Elect Christopher Johnson93.54%6.46%
Elect Alan Rowe93.54%6.46%
Elect C. Robert Gillis94.71%5.29%
Elect John Brussa94.71%5.29%
Elect Aaron Runge93.54%6.46%

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
[email protected]
(416) 347-8954

CRWN 2019 AGM Results FINAL

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Capital Reports Voting Results from Annual and Special Meeting of Shareholders2020-05-12T17:59:31+00:00

Notice of Crown Capital Q1 2020 Results Conference Call and Annual and Special Meeting of Shareholders

CALGARY, April 23, 2020 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the details of its 2020 first quarter financial results conference call, as well as revised details of its Annual and Special Meeting of Shareholders, which are being held on May 5, 2020.

Due to COVID-19, Crown has changed the format of its Annual and Special Meeting of Shareholders. The meeting will now be held virtually, via webinar (address below). The Annual and Special Meeting of Shareholders will focus on the formal business as outlined in the Notice of Meeting and Information Circular. Shareholders are encouraged to participate in the Q1 2020 conference call or webcast for a thorough business update from Crown management.

Q1 2020 CONFERENCE CALL

DATE:Tuesday, May 5, 2020
TIME:8:30 a.m. EDT
DIAL IN NUMBER:(416) 764-8659 or (888) 664-6392
CONFERENCE ID:37927017
REPLAY:(416) 764-8677 or (888) 390-0541 (replay code: 927017#) Available until midnight (EDT) May 12, 2020
WEBCAST:The webcast can be accessed at www.crowncapital.ca under Investor Relations or at https://bit.ly/3cPBnQD

VIRTUAL ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

DATE:Tuesday, May 5, 2020
TIME:4:00 p.m. EDT
TO REGISTERTo register for the webinar, please visit: https://bit.ly/2Vq7Q9X 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
[email protected]
(416) 347-8954

 Download (pdf) 91 KB

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Notice of Crown Capital Q1 2020 Results Conference Call and Annual and Special Meeting of Shareholders2020-05-12T17:59:31+00:00

Crown Capital Partners Announces Renewal of Normal Course Issuer Bid

CALGARY, April 8, 2020 – 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, 2020.

The renewed NCIB will follow the current NCIB, which ends on April 9, 2020 and under which Crown purchased 235,509 shares at a volume-weighted average price per share of $7.20 up to April 7, 2020.

Under the terms of the renewed NCIB, Crown will have the right to purchase up to 550,000 of its common shares (the “Shares”) representing approximately 10% of the public float and approximately 5.8% of the 9,430,712 issued and outstanding Shares as at March 31, 2020. The number of Shares that can be purchased pursuant to the renewed NCIB is subject to a daily maximum of 1,000 Shares, being the greater of (i) 566 Shares, which is 25% of 2,264 Shares (being the average daily trading volume for the Shares on the TSX for the six months ended March 31, 2020); and (ii) 1,000 Shares. Pursuant to TSX temporary relief measures, for the period up to and including June 30, 2020, the daily purchase limit is 1,132 Shares (being 50% of the average daily trading volume for the Shares on the TSX for the six months ended March 31, 2020). 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, 2020 and remain in effect until the earlier of April 12, 2021, the termination of the renewed NCIB by Crown, and Crown purchasing the maximum number of Shares permitted 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, 2019, Crown’s total equity per basic common share was $10.38.

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.

Download PDF

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Capital Partners Announces Renewal of Normal Course Issuer Bid2020-05-12T17:59:31+00:00

Crown Partners Fund Completes Term Loan with Centric Health for up to $30 Million

Crown Partners Fund Completes Term Loan with Centric Health for up to $30 Million

Centric to acquire Remedy’sRx specialty pharmacy business, creating the largest specialty
pharmacy business in Canada

CALGARY, March 31, 2020 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that Crown Partners Fund, an investment fund managed by Crown and in which Crown holds an approximate 39% interest, has completed a term loan of up to $30 million (the “Agreement”) with Centric Health Corporation (“Centric”) (TSX: CHH), a leading provider of pharmacy and other healthcare services to Canadian seniors.

Centric provides specialty pharmacy and other healthcare services to Canadian seniors living in assisted living and long-term care facilities. The company operates a large national network of pharmacy fulfilment centres that deliver high-volume solutions for the cost-effective supply of chronic medication and other specialty clinical pharmacy services, serving more than 31,000 residents in over 460 seniors’ communities nationally. Centric is headquartered in Toronto and operates 14 pharmacy and fulfillment locations in British Columbia, Alberta, Saskatchewan and Ontario.

Crown’s term loan will be used to refinance Centric’s existing senior debt and support Centric’s acquisition of the specialty pharmacy business of Remedy’sRx. Remedy’sRx operates the 5th largest specialty pharmacy business in Canada, and the acquisition positions Centric as the largest specialty pharmacy in Canada, serving approximately 50,000 residents.

“We are pleased to partner with Centric’s proven and experienced management team as they continue to reposition their business to an institutional pharmacy business and execute on this transformative acquisition,” said Chris Johnson, Crown’s President & CEO. “There is an increasing need in Canada for efficient, low cost pharmaceutical services for senior citizens and, as the largest dedicated provider, Centric will be well positioned to capture this projected growth both organically and through additional acquisitions.  We believe that Centric supports an essential component of Canada’s health care system and it should be a strong performer in recessionary conditions.”

“This transaction is the culmination of our strategic transformation in the past two years, and it marks the start of an exciting new chapter for our company,” said David Murphy, President and Chief Executive Officer of Centric Health. “Together with Remedy’sRX, we will be well positioned to accelerate growth and lead the consolidation of a fragmented industry. Crown’s customized facility was a good match for our needs, and we are pleased to have their support to enable this transaction.”

The Agreement provides for a term loan of up to $30 million, of which Crown Partners Fund has advanced $22 million to repay Centric’s senior debt facility and for working capital purposes.  An additional $5 million will be advanced upon the close of the Remedy’sRx acquisition, with the remaining $3 million available to be drawn within a 12-month period.  The term loan bears a fixed interest rate of 10% per annum, matures in 60 months, and includes the issue to Crown Partners Fund of warrants to acquire 7,200,000 common shares of Centric at an exercise price of $0.25 per common share.

This investment brings the total loans outstanding in Crown Partners Fund to $235 million across 12 companies.

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 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.

Download (pdf) 176.60 KB

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Partners Fund Completes Term Loan with Centric Health for up to $30 Million2021-01-18T19:51:47+00:00

Crown Partners Fund Completes $5.5 Million Term Loan with Internet Service Provider CCI Wireless

CALGARY, March 27, 2020 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that Crown Partners Fund, an investment fund managed by Crown and in which Crown holds an approximate 39% interest, has completed a two-year, $5.5 million term loan with CCI Wireless (“CCI”), a wireless internet service provider focused on Western Canada.

Headquartered in Calgary, CCI specializes in providing internet connectivity to rural and remote residential clients as well as customized connectivity solutions for First Nations and urban and rural enterprise clients across Western Canada. CCI was founded in 2007 by nine Alberta natural gas co-ops that were receiving insufficient internet service from incumbent providers. CCI maintains a carrier-grade network that covers more than 250,000 square kilometers with over 23,000 clients. The funding from Crown Partners Fund will be used to repay existing debt and support CCI’s growth plans.

“CCI has built a large, diverse and stable client base across western Canada by addressing the growing need for connectivity solutions to under-served regions,” said Chris Johnson, Crown’s President & CEO. “This is a long-term growth theme we understand well from our current investment in telecommunications infrastructure and one we believe has considerable growth opportunity for Crown.”

”In Crown, CCI has secured the ideal strategic partner to drive our growth strategy.  Crown’s experience in the telecom infrastructure space in North America is an ideal fit for CCI; allowing us to expand on our success in deploying Carrier grade telecom solutions for underserved communities,” said Jordan Young, CEO.

The demand for fixed internet across Canada has been growing as consumers and enterprises increasingly rely on internet connectivity and consume greater amounts of data. The new minimum service standards recently defined by the Canadian Radio-television and Telecommunications Commission results in greater than 60% of the rural population of Canada falling below the minimum internet speed requirements. CCI operates in Canada’s four western provinces that combine to represent a target market of $4.6 billion annually comprised of residential and enterprise fixed internet customers.

This investment brings the total loans outstanding in Crown Partners Fund to $213.3 million across 11 companies.

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 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.

Download (pdf) 134.65 KB

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Partners Fund Completes $5.5 Million Term Loan with Internet Service Provider CCI Wireless2021-01-18T19:51:52+00:00

Crown Capital Partners Announces Financial Results for Q4 & Full-Year 2019

CALGARY, March 13, 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 fourth quarter and year ended December 31, 2019. Crown’s complete financial statements and management’s discussion and analysis for the three- and 12-month periods ended December 31, 2019 are available on SEDAR at www.sedar.com.

2019 Financial & Operating Highlights

  • Interest revenue increased to $28.3 million, compared with $26.6 million in 2018, due to higher contributions from Crown Partners Fund and Crown Private Credit Fund, as well as initial revenue recognized in Crown Power Fund.
  • Total revenue was $25.2 million, a decrease from $32.7 million in 2018. The year-over-year change mainly reflects a net loss on investments, including the previously disclosed $11.1 million realized loss on Crown Partners Fund’s Solo Liquor Holdings Limited (“Solo”) investment, offset by the addition of network services revenue from the acquisition of WireIE Holdings International Inc. (“WireIE”).
  • Net income (loss) and comprehensive income (loss) totaled $(0.2) million, compared with $7.1 million in 2018. The year-over-year decrease was due primarily to the realized loss recognized on the Solo investment; the acquisition of WireIE, which had an aggregate net negative impact on earnings before income taxes of $0.4 million; a previously disclosed $2.5 million provision for bad debt recognized in relation to amounts owing from an operating partner formerly affiliated with Crown Power Fund; and a reduction in other net investment gains to $0.4 million compared with $2.5 million in 2018.
  • Adjusted Funds from Operations1 decreased to $5.3 million ($0.56 per basic share), compared with $13.2 million ($1.38 per basic share) in 2018, due to the factors described above.
  • Total assets increased to $299.7 million at quarter-end, compared with $275.9 million at December 31, 2018.
  • Crown paid quarterly dividends totaling $0.60 per common share in 2019.
  • Crown acquired WireIE, which deploys carrier-grade data networks to underserved communities. Crown believes this industry provides an attractive new avenue for growth, and intends to leverage this operating platform to develop a third-party fund. While WireIE generates positive cash flow from recurring contracts, the business contributed a net loss before income taxes of $(0.9) million following its acquisition in July in 2019, mainly because of depreciation expense of $1.9 million.
  • Crown Partners Fund announced new investments totaling approximately $74 million and repayments of $57 million.
  • Completed agreement with Concentra Bank to provide investment management services for Concentra Bank’s investment in a senior secured credit facility.
  • Continued scale-up of Crown Power Fund, with the addition of three new operating partners and construction on four new distributed power projects, increasing the total number of projects in development or in operation to 10 at year end.

 Q4 2019 Financial & Operating Highlights

  • Total revenue of $10.3 million was comparable to $10.4 million in Q4 2018 including $2.1 million of network services revenue (Q4 2018 – $nil) from WireIE and decreases in each of interest revenue, fee and other income and the net gain on investments.
  • Net income attributable to shareholders of $1.1 million (Q3 2019 – $0.5 million; Q4 2018 – $2.4 million), or $0.11 per common share (basic) (Q3 2019 – $0.05; Q4 2018 – $0.25). Net income was negatively impacted by a net loss of $(0.3) million from the operations of WireIE, including related depreciation expense of $0.7 million, as well as additional investments to support the growth of new financing platforms.
  • Adjusted Funds from Operations1 decreased to $3.4 million ($0.36 per basic share) from $3.9 million ($0.41 per basic share) in Q4 2018 but improved compared with $(0.5) million in Q3 2019.
  • On November 29, 2019, paid a quarterly dividend of $0.15 per common share.
  • Crown Partners Fund advanced an additional $27 million to three portfolio companies in Q4 2019. Subsequent to year end, Crown Partners Fund advanced an additional $6.1 million to VIQ Solutions Inc., increasing that term loan to $15.0 million.
  • The first distributed power project developed by Crown Power Fund became operational.

Management Commentary

“We faced some challenges in 2019 as we worked through the start-up phases of two new financing platforms and dealt with a loss on one of our special situation investments. While these events – and investments we are making in future growth – affected our earnings for the year, we are pleased with the progress being made to transition Crown into a more diversified finance platform with a much larger market opportunity and higher earning power over the long term,” said Chris Johnson, President and CEO of Crown.

“In 2019, our alternative finance business grew modestly despite elevated competitive pressures from traditional finance providers, and we are delivering the expected performance in Crown Partners Fund. We see improved market conditions for alternative finance opportunities in 2020 and continue to believe this platform can grow to $500 million in assets over time. In our distributed power business, we have worked through many of the initial start-up challenges and expect accelerated progress on many fronts this year. We currently have nine projects in development or in operation, which will increase revenue and operating cash flow to the fund. Moreover, the new project pipeline is robust and accelerating, supported by the addition of three new operating partners in 2019. These include our first operator based in Alberta, which provides a strategic foray into onsite power projects that can be augmented with sales of market electricity to the grid.”

“In 2020, we will continue to invest in the development of our power and telecom platforms while ensuring the overall business remains solidly profitable. We are especially focused on originating new special situations investments and building out Crown Power Fund’s operator base and project pipeline, supported by increased marketing efforts in targeted verticals and geographic expansion. At the same time, we will look to secure additional third-party funding to grow these two segments.”

Mr. Johnson added: “We are actively monitoring the impact of the COVID-19 pandemic and the related economic impacts on the health of our portfolio companies.  In addition, there is increased volatility in global oil markets; however, Crown’s energy clients have substantial natural gas exposure and this is expected to provide stability to these companies. It is not clear at this time the extent to which our diversified portfolio companies will be impacted by the economic volatility, but management presently believes that the impacts will not materially impair their ability to make payments on their debt obligations.”

Conference Call & Webcast

Crown will host a conference call to discuss its Q4 2019 financial results at 8:30 a.m. EDT on March 13, 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 19840668. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or https://bit.ly/38NFURX. 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.

Download

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Capital Partners Announces Financial Results for Q4 & Full-Year 20192021-01-18T19:51:54+00:00

Crown Capital Announces Quarterly Dividend of $0.15 Per Share

CALGARY, March 12, 2020 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that its Board of Directors has declared a dividend of $0.15 per common share, payable on March 27, 2020 to all shareholders of record as of the close of business on March 19, 2020.

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

About Crown 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 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 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.

Download

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Crown Capital Announces Quarterly Dividend of $0.15 Per Share2021-01-18T19:51:56+00:00

Notice of Crown Capital Q4 2019 Results Conference Call

CALGARY, February 27 , 2020 – 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 2019 fourth quarter and full-year financial results on March 13, 2020 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 13, 2020.

Q4 2019 CONFERENCE CALL

DATE:                                    Friday, March 13, 2020

TIME:                                    8:30 a.m. EST

DIAL IN NUMBER:                (416) 764-8659 or (888) 664-6392

CONFERENCE ID:                 19840668

REPLAY:                                (416) 764-8677 or (888) 390-0541 (playback code: 840668)

Available until midnight (EST) March 20, 2020

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

Investor Relations or at https://bit.ly/38NFURX

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.

Download

Subscribe to our newsletter to get the latest news and insights right in your inbox.

Subscribe
© 2021 Crown Capital Partners Inc.
Terms of UsePrivacy Policy

Notice of Crown Capital Q4 2019 Results Conference Call2021-01-18T19:51:58+00:00