Mr. Chris Johnson reports

CROWN CAPITAL ANNOUNCES REPAYMENT OF PETROWEST LOAN

A special situations loan made by Crown Capital Fund IV LP, an investment fund managed by Crown Capital Partners Inc. and in which Crown holds a 36.5-per-cent interest, has been fully repaid by Petrowest Corp.

CCF IV advanced $15-million to Petrowest in September, 2015. As part of a financial restructuring, CCF IV and a syndicate partner advanced an additional $12-million to Petrowest in May, 2017. Petrowest was placed into receivership by its creditors in August, 2017, and all of Petrowest's assets were offered for sale.

In November, 2017, as consideration for the acquisition of the assets of the civil division from Petrowest, approximately $19.6-million of the loan was assumed by RBee Aggregate Consulting Ltd. RBee, which has one of the largest mobile crushing fleets in Western Canada, is now 50 per cent owned by the management of RBee and 50 per cent owned by CCF IV and its syndicate partner.

As at March 31, 2018, the total amount owing by Petrowest to CCF IV and its syndicate partner included $7.4-million of loan principal, as well as accrued interest and fees. Subsequent to quarter-end, approximately $800,000 of loan principal was reallocated from the RBee loan to the Petrowest loan due to final adjustments to the purchase price of the RBee assets, resulting in an outstanding principal amount owing by Petrowest to CCF IV and its syndicate partner of $8.2-million.

Since March 31, 2018, CCF IV and its syndicate partner have received aggregate payments in respect of the Petrowest loan of $9.7-million, representing full repayment of the principal amount owing, as well as all accrued interest and supplemental fees.

The realized gross IRR (internal rate of return) on CCF IV's aggregate investment in Petrowest was 18.2 per cent.

"We are pleased with our team's effort to recover the full investment in the Petrowest loan. While the liquidation of a company is a disappointing and unfortunate outcome for all involved, we remain committed to delivering superior results for our shareholders and investment partners," said Chris Johnson, president and chief executive officer of Crown. "Separately, RBee is performing well, with strong customer demand resulting in high utilization and favourable operating margins."

About Crown Capital Partners Inc.

Crown 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.

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