Acasta Announces Monetization of its Profit Participating Notes
TORONTO--(BUSINESS WIRE)--May 14, 2018--Acasta Enterprises Inc. (TSX:AEF) (“ Acasta ” or the “ Company ”) announced today that it has monetized its interest in the profit participating notes (“ PPNs ”) that were retained by Acasta following the sale of its Stellwagen business unit. The net proceeds from the monetization of the PPNs were approximately $28.5 million which amount was used by Acasta to further pay down indebtedness. These proceeds exclude the additional U.S.$5 million due from the purchaser of the Stellwagen business unit pursuant to the sale agreement.
As a result of sale of the Stellwagen business unit and the PPNs, Acasta has effectively reduced its total indebtedness by approximately $68.8 million.
Cautionary Note Concerning Forward Looking Statements
This news release may include forward looking statements. All such statements constitute forward looking information within the meaning of applicable securities law and are made pursuant to the “safe harbour” provisions of applicable securities laws. Forward looking statements may include, but are not limited to, statements about anticipated future events or results, including comments with respect to Company’s future business operations, financial performance and condition. Forward looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. The forward looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company’s business and strategic priorities and objectives as at the periods indicated and may not be appropriate for other purposes.
A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward looking statements contained in this news release, including, among other factors, those referenced in the section entitled “Risk Factors” in the Company’s annual information form for the year ended December 31, 2017, a copy of which is available on the SEDAR website at www.sedar.com under the Company’s profile.
Forward looking statements contained in this news release are not guarantees of future performance and, while forward looking statements are based on certain assumptions that the Company considers reasonable, actual events could differ materially from those expressed or implied by forward looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and to not place undue reliance on forward looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, Acasta does not undertake any obligation to update publicly or revise any such forward looking statements, whether as a result of new information, future events or otherwise. These cautionary statements expressly qualify all forward looking statements in this new release.
All references to dollars ($) in this news release are to Canadian dollars, unless otherwise stated.
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CONTACT: For further information
Acasta Enterprises Inc.
Ian Kidson, 1-647-725-6707
Interim Chief Executive Officer
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE
SOURCE: Acasta Enterprises Inc.
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PUB: 05/14/2018 10:30 PM/DISC: 05/14/2018 10:30 PM