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Crown Capital Partners Completes $12.0 Million Term Loan with DATA Communications Management Corp.

Financing supports acquisition of the Perennial Group of Companies

CALGARY, May 1, 2018 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $12.0 million term loan to DATA Communications Management Corp. (“DCM”) (TSX:DCM), a leading provider of integrated business communication solutions to companies across North America.

Founded in 1959, DCM’s core capabilities include direct marketing, commercial print services, labels and asset tracking, event tickets and gift cards, logistics and fulfilment, content and workflow management, data management and analytics, and regulatory communications. The company serves clients in key vertical markets such as financial services, retail, healthcare, lottery and gaming, not-for-profit, and energy. DCM is strategically located with six facilities across Canada to support clients on a national basis, and serves the U.S. market through facilities in Chicago, Illinois and New York, New York.

DCM will use part of the proceeds of the term loan to acquire the Perennial Group of Companies (the “Perennial Group”), which includes Perennial Inc., one of Canada’s leading design firms focused on creating and delivering design strategies for major retail brands in Canada and around the world, and The Finished Line Studios, an independent, multi-function creative, execution and production art studio.  The Perennial Group has a 25-year track record of retail strategy design and execution for many of North America’s top brands in the retail, financial services and consumer packaged goods markets.  Crown’s financing will also be used for debt repayment and general working capital purposes.

“DCM is a well-established company with a significant revenue base and history of strong free cash flow, and we are pleased to support them as they continue to expand through acquisition and transition to a marketing communications-focused provider,” said Chris Johnson, Crown’s President & CEO. “Among the reasons we like DCM is its diversified, blue-chip customer base – and its track record of retaining these customers. The Perennial acquisition brings additional high-quality customers and complementary capabilities to deliver design strategies for leading brands.”

“Crown’s non-dilutive financing was the right solution for DCM and we look forward to working with the Crown team as we execute on our growth plan,” said Michael Sifton, CEO of DCM. “The Perennial acquisition, combined with the acquisitions we completed in 2017 and positive sales momentum in our core business, bodes well for improved performance in 2018.”

The Agreement provides for a $12.0 million term loan to DCM by Crown Capital Fund IV, LP, an investment fund managed by Crown and in which Crown holds a 36.5% interest. The term loan bears a fixed interest rate of 10% per annum, matures in 60 months, and includes the issue to Crown of warrants to acquire 960,000 common shares of DCM.

ABOUT CROWN

Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies. 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.

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 using 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 outlook and future performance of DCM. 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. 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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