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Notice of Crown Capital Q3 2021 Results Conference Call

CALGARY, October 21, 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 third quarter financial results on November 10, 2021 at 11:00 a.m. EST. The call will be hosted by Chris Johnson, President and Chief Executive Officer, and Michael Overvelde, Chief Financial Officer.

Q3 2021 CONFERENCE CALL

DATE:                                      Wednesday, November 10, 2021

TIME:                                       11:00 a.m. EST

DIAL IN NUMBER:                (647) 792-1240 or (888) 269-4260

CONFERENCE ID:                  2526291

REPLAY:                                 (647) 436-0148 or (888) 203-1112 (playback code: 2526291) Available until midnight (EST) November 17, 2021

WEBCAST:                              The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at: https://bit.ly/2YZV5r1

ABOUT CROWN CAPITAL PARTNERS (TSX: CRWN)

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

For further information, please contact:

Craig Armitage
Investor Relations
[email protected]
(416) 347-8954

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Notice of Crown Capital Q3 2021 Results Conference Call2021-10-22T04:08:33-04:00

Crown Capital Partners Announces Loan Repayment

TORONTO, September 13, 2021 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), today announced that Crown Capital Partner Funding, LP (“Crown Partners Fund”), an investment fund of which it owns an effective interest of approximately 28%, has received the full repayment by T5 SC Oil and Gas Limited Partnership (“T5”) of its $27.0 million term loan from Crown Partners Fund, of which the first advance was completed in August 2018.

T5 is a privately held, Calgary-based petroleum and natural gas company. Crown Partners Fund received aggregate proceeds of $29.75 million, including the repayment of the full loan principal plus accrued fees, expenses and interest, as well as a buyout of the production payment agreement plus accrued payments in respect of that agreement. The realized Gross IRR on Crown Partners Fund’s aggregate investment was 16.7%.

“We are pleased to realize another successful investment for Crown Partners Fund and further reduce our investment in corporate financing transactions,” said Chris Johnson, President and CEO of Crown. 

About Crown Capital Partners (TSX:CRWN)

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

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

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Crown Capital Partners Announces Loan Repayment2021-09-13T15:27:27-04:00

Crown Capital Partners Announces Loan Repayment

TORONTO, August 23, 2021 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), today announced  that Crown Capital Partner Funding, LP (“Crown Partners Fund”), an investment fund of which it owns an  effective interest of approximately 28%, has received the full repayment by CareRx Corporation (“CareRx”)  of its $27 million term loan. Crown Partners Fund received partial repayment of $5 million in May 2021,  followed by the recent repayment of the remaining $22 million.  

CareRx is Canada’s leading provider of pharmacy services to seniors living and other congregate care  communities. The term loan with Crown Partners Fund was originally completed in March 2020 and the  realized Gross IRR on Crown Partners Fund’s aggregate investment was 14%, excluding the remaining warrant  position which have a current fair value of approximately $1 million. 

“CareRx has been a strong performer for the fund. This repayment was expected and consistent with Crown’s  strategy to recover capital from our corporate financing portfolio,” said Chris Johnson, President and CEO of  Crown. 

About Crown Capital Partners (TSX:CRWN) 

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

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

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Crown Capital Partners Announces Loan Repayment2021-08-23T17:20:12-04:00

Crown Capital Partners Announces Financial Results for Q2 2021

CALGARY, August 12, 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 second quarter ended June 30, 2021. Crown’s complete financial statements and management’s discussion and analysis for the three- and six-month periods ended June 30, 2021 are available on SEDAR at www.sedar.com.

Q2 2021 Financial & Operating Highlights

  • Reported total revenue of $13.1 million, compared with $13.3 million in Q2 2020, as higher Network Services revenue was offset by lower interest revenue and a $0.8 million net loss on investments, versus a significant net investment gain of $3.4 million in Q2 2020.
  • Interest revenue decreased to $6.4 million, compared with $7.2 million in Q2 2020, due primarily to a year-over-year decrease in the average level of interest-yielding loan investments, consistent with management’s plan to reduce its loan-based investments, partially offset by an increased contribution from Crown Power Fund.
  • Continued growth of the Network Services platform, revenue stream and operating profit. Network Services revenue increased to $6.9 million in Q2 2021 (52% of total revenue for the quarter), up from $1.9 million in Q2 2020 and $6.4 million in Q1 2021. The year-over increase reflects the recognition of two full quarters of network services revenue from Galaxy following its acquisition in September 2020, as well as organic growth.
  • Adjusted Funds from Operations1 decreased to $3.2 million ($0.36 per basic share), compared with $3.6 million ($0.38 per basic share) in Q2 2020, due primarily to a $(0.4) million net realized loss attributable to shareholders in the quarter, versus a net realized gain attributable to shareholders of $0.4 million in the prior year period.
  • Net loss improved to $(0.3) million, compared with ($1.6) million in Q2 2020.
  • Total assets increased to $332.5 million at quarter-end, compared with $326.2 million as at December 31, 2020.
  • Total equity at quarter-end was $81.5 million, or $9.05 per basic share, up from $81.2 million, or $8.98 per share, at year-end 2020.
  • Crown acquired 100% of the common shares of PBC Barrie Corp. (“PBC”), in exchange for consideration of $5.3 million, representing a reduction in the amount owed to Crown by PenEquity. PBC’s assets are primarily comprised of land located in Barrie, Ontario.
  • Crown acquired 100% of the common shares of Lumbermens Credit Group Ltd., an Ontario-based construction credit reporting company, in exchange for cash consideration of $0.3 million and a $1.25 million reduction in the amount owed to Crown by Mill Street, the former parent of Lumbermens.
  • Crown successfully refinanced its existing syndicated corporate credit facility by entering into a new, bilateral senior secured corporate credit facility with ATB Financial.

“We continue to make significant and important strides to transition the business and execute on our strategy to reduce our investment in corporate financing transactions and increase operating earnings in our newer lines of business, which we believe is the best path to long-term value creation,” said Chris Johnson, President and CEO of Crown. “Building on the sale of part of our position in Crown Partners Fund during Q1, we recently announced the divestment of a majority stake in our fund management business and another portion of our investment in the fund. Together, these transactions reduced our investment in Crown Partners Fund from approximately 39% to 28% and accelerated the return of over $20 million of capital. We also continue to make progress with plans to return capital to shareholders. Over the past year, between the NCIB and recently completed SIB, we have returned $4.8 million to shareholders through the purchase of almost one million common shares, reducing shares outstanding by more than 10%.”

Mr. Johnson added: “Our Network Services business continues to show strong growth in revenue and operating earnings, validating our belief in the long-term opportunity to bring broadband connectivity to remote locations. This segment represented more than 50% of total revenue in the quarter and generated $2.6 million and $4.7 million of income before income tax, financing charges and depreciation and amortization in the quarter and year-to-date, respectively.”

Subsequent Events:

Since the end of Q2 2021:

  • On July 13, 2021, consistent with Crown’s planned shift towards a capital-light business model, the Company announced the divestment of a majority stake in CPCP, our alternative lending fund management business, to a group including Canadian Western Bank, Concentra Bank, Mount Logan Capital Inc. and certain management participants. This transaction also included a partial sale of Crown’s interest in Crown Partners Fund at a transaction price equal to net asset value, reducing the effective ownership position from 36.5% as at June 30, 2021 to 28.0%. The proceeds of $16.3 million were applied as a partial repayment of the balance outstanding on the Crown Credit Facility.
  • On July 28, 2021, Crown announced the results of its substantial issuer bid, which resulted in the purchase and cancellation of 559,854 Common Shares at a price of $5.50 per Common Share in cash for an aggregate cost of $3.1 million excluding fees and expenses.

Q2 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 Q2 2021 financial results at 11:00 a.m. ET on August 13, 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 85156119. The webcast can be accessed at www.crowncapital.ca under Investor Relations. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

About Crown Capital Partners (TSX:CRWN)

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

FORWARD-LOOKING STATEMENTS
This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the alternative financial market, the network services market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated investment dispositions and capital deployments and the timing thereof, and Crown’s future earnings. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See Crown’s most recent annual information form for a detailed discussion of the risk factors affecting Crown. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

For further information, please contact:

Craig Armitage
Investor Relations
[email protected]
(416) 347-8954

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Crown Capital Partners Announces Financial Results for Q2 20212021-08-12T18:00:41-04:00

Notice of Crown Capital Q2 2021 Results Conference Call & Investor Update

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

Q1 2021 CONFERENCE CALL

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

About Crown Capital Partners (TSX:CRWN)

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

For further information, please contact:

Craig Armitage
Investor Relations
[email protected]
(416) 347-8954

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Subscribe
© 2021 Crown Capital Partners Inc.
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Notice of Crown Capital Q2 2021 Results Conference Call & Investor Update2021-07-29T16:02:10-04:00

Crown Capital Announces Final Results of its Substantial Issuer Bid

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

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

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

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

About Crown Capital Partners (TSX:CRWN)

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

FORWARD-LOOKING STATEMENTS

This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding its plans to reduce capital allocated to alternative corporate financing and to redirect that capital toward strategic growth initiatives and the repurchase of shares through a normal course issuer bid. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See Crown’s most recent annual information form for a detailed discussion of the risk factors affecting Crown. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the Board. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

For further information, please contact:

Craig Armitage
Investor Relations
[email protected]
(416) 347-8954

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Crown Capital Announces Final Results of its Substantial Issuer Bid2021-07-28T10:37:12-04:00

Crown Capital Announces Divestiture of a Majority Interest in its Alternative Corporate Financing Business

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
[email protected]
(416) 347-8954

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Subscribe
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Crown Capital Announces Divestiture of a Majority Interest in its Alternative Corporate Financing Business2021-07-13T07:41:58-04:00

Crown Capital Announces Intention to Commence Substantial Issuer Bid

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: [email protected]

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
[email protected]
(416) 347-8954

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Crown Capital Announces Intention to Commence Substantial Issuer Bid2021-06-17T01:53:45-04:00

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

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:

Motions% of Shares Voted For% of Shares Voted Withhold
Elect John Brussa99.96%0.04%
Elect C. Robert Gillis97.15%2.85%
Elect Christopher Johnson91.97%8.03%
Elect Alan Rowe91.97%8.03%
Elect Steven Sharpe98.85%1.15%

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

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© 2021 Crown Capital Partners Inc.
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Crown Capital Reports Voting Results from Annual and Special Meeting of Shareholders2021-05-25T20:09:59-04:00

Crown Capital Partners Announces Financial Results for Q1 2021

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
[email protected]
(416) 347-8954

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Crown Capital Partners Announces Financial Results for Q1 20212021-07-13T07:53:29-04:00