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.
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.
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