Lorne Park Capital Partners Inc. enters into Letter of Intent to acquire Crestridge Asset Management Inc.
TORONTO, ONTARIO–(Marketwired – July 4, 2017) –
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Lorne Park Capital Partners Inc. (TSX VENTURE:LPC) (“LPCP”) announced today that it has entered into a letter of intent (“LOI”) to purchase all of the outstanding securities of Crestridge Asset Management Inc. (“Crestridge”), an independent portfolio manager based in Toronto (the “Proposed Transaction”).
Crestridge provides discretionary investment management and wealth management services for individuals, trusts and foundations with clients across Canada. As of May 31, 2017, Crestridge had approximately $120 million in assets under management.
“We are confident that we have found a new partner in Crestridge that shares similar perspectives on investment management and a commitment to delivering tailored investment solutions to affluent families,” commented Robert Sewell, Chief Executive Officer of LPCP and Bellwether.
“This proposed acquisition enhances our scale within the investment management industry by providing us with a broader suite of investment solutions and additional resources that will benefit our clients,” said Jeffrey Black, President and Chief Investment Officer of Crestridge.
“With the proposed addition of Crestridge, the combined firm will add to our presence within the GTA with an office in downtown Toronto. The addition of the Crestridge team will allow us to better serve all of our clients and work more effectively with our advisor partners,” said Steve Meehan, Chairman of LPCP and Bellwether.
The LOI contemplates that LPCP will acquire all of the shares of Crestridge in exchange for consideration of $1.35 million, to be paid by LPCP as follows: $500,000 in cash and $200,000 in common shares of LPCP issued at the 30-day volume-weighted average trading price (“VWAP”) of the LPCP common shares on the TSX Venture Exchange (the “TSXV”) upon closing; $300,000 in cash and $200,000 in common shares of LPCP issued at the 30-day VWAP upon the first anniversary of closing; and $150,000 in cash on the 18-month anniversary of closing, in each case subject to adjustment based on Crestridge’s annualized revenue as of each payment date. On or after closing, LPCP expects that Crestridge will amalgamate with LPCP’s wholly owned subsidiary, Bellwether Investment Management Inc. (“Bellwether”), a registered portfolio manager and investment fund manager, and Crestridge will continue as a division of Bellwether.
The Proposed Transaction is expected to close on or around August 15, 2017, subject to a number of conditions, including negotiation of a definitive agreement, due diligence, and receipt of the approval of the TSXV and applicable securities regulatory authorities.
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.
About Bellwether Investment Management Inc.
Bellwether is a boutique investment manager that offers tailored investment solutions for affluent investors, foundations, estates and trusts utilizing its proprietary “Disciplined Dividend Growth” Investment Process. Bellwether provides discretionary investment management focused on North American Dividend Growth investing and is dedicated to serving the distinct needs of affluent families. Bellwether’s suite of investment solutions includes Canadian, US and global equity and fixed income strategies. Bellwether is a subsidiary of LPCP.
About Crestridge Asset Management Inc.
Crestridge is an independent portfolio manager that provides discretionary investment management for individuals, trusts and foundations. Crestridge manages client portfolios utilizing an investment philosophy which utilizes equity and fixed income investments as well as Exchange Traded Funds (ETFs).
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 statements which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “plan”, and other similar expressions. Forward looking information in this news release includes, without limitation, the terms, timing, and completion of the Proposed Transaction; the amalgamation of Crestridge and Bellwether; and LPCP’s objectives, goals and future plans. Forward-looking information addresses possible future events, conditions and financial performance based upon management’s current expectations, estimates, projections and assumptions. In particular, the forward-looking information contained in this news release reflects assumptions about the timing and results of negotiations, due diligence, and regulatory approvals. Management of LPCP considers the assumptions on which the forward-looking information contained herein are based to be reasonable. However, by its very nature, forward-looking information inherently involves known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such information. Such risks include, without limitation, discovery of, or failure to discover, material issues during due diligence; the failure to agree on the final terms of definitive agreement; breach of contract; failure to obtain regulatory approval; and changes in economic conditions, applicable laws or regulations. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. LPCP disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.