CALGARY, April 6, 2016 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced that the Toronto Stock Exchange (the “TSX”) has approved its Notice of Intention to make a normal course issuer bid (“NCIB”). Crown will have the right under the NCIB to purchase up to 620,000 of its common shares (the “Shares”) representing approximately 10.0% of the public float of Shares and approximately 6.5% of the 9,494,002 issued and outstanding Shares.
Crown is commencing the NCIB because, in the opinion of the Corporation’s board of directors and senior management, the Shares may occasionally trade in a price range which does not adequately reflect the value of the underlying business and financial position.
“We continue to deliver on the plan articulated during our initial public offering, and the current market conditions for our debt solutions are among the most favorable we have witnessed in our 15-year history, resulting in a strong and growing transaction pipeline,” said Chris Johnson, President and CEO of Crown. “In our view, the current trading price, which represents approximately 0.8 times book value per share, undervalues the business given the quality of our assets and growth prospects. As a result, we will be using a portion of our free cash flow to buy back Shares while continuing to deliver on our growth plan, putting capital to work to generate growing earnings and cash flow for shareholders.”
Purchases made pursuant to the NCIB will be made in the open market through the facilities of the TSX and alternative trading systems, if eligible. The NCIB will commence on April 8, 2016 and remain in effect until the earlier of April 7, 2017, the termination of the NCIB by Crown and Crown purchasing the maximum number of Shares permitted under the NCIB. Shares purchased by the Corporation pursuant to the NCIB will be cancelled. The number of Shares that can be purchased pursuant to the NCIB is subject to a daily maximum of 3,639 Shares which is 25% of 14,556 (being the average daily trading volume for the Shares on the TSX for the six months ended March 31, 2016).
Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.
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 potential future purchases of Shares, Crown’s business plans and strategy, including anticipated capital deployments, and Crown’s future cash flow and shareholder value. 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.
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