CALGARY, November 17, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the repayment by Medicure Inc. (“Medicure”) (TSXV: MPH) of a special situations loan managed by Crown.
Medicure is a pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. cardiovascular market. Crown arranged a $60.0 million, four-year term loan to Medicure in November 2016, of which Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 36.5% interest, advanced $30 million, with the remaining $30 million syndicated to a limited partner in Crown’s funds. Medicure used the proceeds to purchase additional shares of Apicore, a developer and manufacturer of specialty Active Pharmaceutical Ingredients and pharmaceuticals. In October 2017, Medicure announced that it sold its interests in Apicore.
“The Apicore acquisition was a tremendous value-creating transaction for Medicure and we wish the team continued success as they advance their growth plans,” said Chris Johnson, President and CEO of Crown. “This loan generated strong returns for Crown and its investors.”
“Crown has been an excellent financial partner to Medicure, and their financing solution and speed of execution were instrumental in allowing us to execute on this very successful acquisition while minimizing dilution,” said Dr. Albert D. Friesen, Medicure’s President and Chief Executive Officer.
Medicure has prepaid this loan in full, including principal, interest and fees. Crown IV LP continues to own warrants to acquire 450,000 common shares of Medicure, exercisable at $6.50 per share.
Crown (TSX: CRWN) 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 Crown’s dividend and future increases to the dividend. 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 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) 156.53 KB