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Lorne Park Capital Partners Completes First Closing of Debenture Issue

Lorne Park Capital Partners Completes First Closing of Debenture Issue

Lorne Park Capital Partners Inc. closes a Private Placement of $2,311,000 in Non-Convertible Unsecured Debentures

/NOT FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

TORONTO, Aug. 15, 2014 /CNW/ – Further to Lorne Park Capital Partners Inc.’s (TSX-V: LPC) (“LPCP” or the “Corporation“) news release of June 10, 2014, the Corporation is pleased to announce it has closed its previously announced non-brokered private placement offering of non-convertible and unsecured debentures of the Corporation (the “Debentures“) for an aggregate principal amount of CAD$2,311,000 (the “Placement“).  The Placement is subject to final approval by the TSX Venture Exchange.

The Debentures have been issued as of August 15, 2014 (the “Closing Date“) and will mature on and become payable on August 15, 2019.  The Debentures bear an interest at a fixed rate of 8% per annum.  The Debentures are direct, unsecured obligations of the Corporation, ranking equally with all other unsecured indebtedness of the Corporation. 

The Corporation has also issued to the Debenture subscribers an aggregate of 577,750 warrants (the “Warrants“), each of which entitles a Debenture holder to purchase one common share of the Corporation at an exercise price of $0.40 per common share for a period of one year from the Closing Date. The Warrants will not be traded on the TSX Venture Exchange, but the common shares issuable on the exercise of the Warrants (the “Warrant Shares“) will be listed.

All of the securities issued in connection with the Placement are subject to a four-month hold period under applicable Canadian securities laws expiring December 16, 2014.

The net proceeds of the Placement will be used as previously announced in the news release of June 10, 2014.  Subject to approval by the TSX Venture Exchange, the Corporation expects to raise additional funds in another offering later this year.

Insiders of the Corporation purchased $306,000 of the Placement.  The Placement is considered to be a related party transaction as defined under Multilateral Instrument 61-101 (“MI 61-101“).  The Placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Corporation’s market capitalization.

About Lorne Park Capital Partners Inc.

LPCP was created to bring together boutique investment management and wealth advisory firms in order to deliver robust, cost effective investment solutions to affluent investors, foundations, estates and trusts. LPCP’s unique strategy creates better alignment between investment managers and wealth advisors while providing them with additional resources to accelerate their growth.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain forward-looking statements. LPCP has tried, whenever possible, to identify these forward-looking statements using words such as “anticipates”, “believes”, “estimates”, “expects”, “plans”, “intends”, “potential”, “may” and other similar expressions. These statements reflect LPCP’s current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause LPCP’s actual results, performance or achievements to differ materially from those expressed in or implied by such statements. LPCP undertakes no obligation to update or advise in the event of any change, addition or alteration to the information contained in this news release including such forward-looking statements, unless otherwise required under applicable law.