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Acasta Enterprises Inc
Symbol C : AEF
Shares Issued 95,715,298
Close 2018-03-26 C$ 2.29
Recent Sedar Documents

Acasta Enterprises completes sale of Stellwagen

2018-03-27 10:12 ET - News Release

Mr. Ian Kidson reports

ACASTA COMPLETES SALE OF STELLWAGEN BUSINESS UNIT AND ANNOUNCES REVISED NOTICE OF RELEASE OF FOURTH QUARTER AND YEAR-END 2017 FINANCIAL RESULTS

Acasta Enterprises Inc. has completed the previously announced sale of its Stellwagen business unit to a company that will be indirectly owned by Douglas Brennan and certain other investors.

"With the closing of the transaction, Acasta has reduced its overall bank indebtedness to approximately $153-million (U.S.). Moving forward, Acasta will focus exclusively on creating value in its consumer products operating companies and focus on further debt reduction initiatives," commented Ian Kidson, interim chief executive officer of Acasta.

Acasta has applied the initial proceeds from the transaction, being approximately $35-million (U.S.), to satisfy the previously disclosed payment of $25-million (U.S.) owed by Acasta by March 31, 2018, under its $150-million (U.S.) credit facility and to pay down additional amounts outstanding under the credit facility. As a result of the transaction, Acasta has effectively also reduced its share count from approximately 95.7 million issued and outstanding common shares to approximately 69.7 million common shares.

As previously disclosed, Acasta retained ownership of profit participating notes issued to Acasta by a subsidiary of Stellwagen and is working with its financial adviser to monetize the PPNs. Acasta will use proceeds from the sale of the PPNs to further pay down indebtedness outstanding under the credit facility.

The special committee of independent directors of the board of directors received an opinion from Blair Franklin Capital Partners Inc. dated March 18, 2018, that the consideration received by Acasta in connection with the transaction is fair, from a financial point of view, to Acasta.

2017 financial statements and investor conference call

Acasta will release its fourth quarter and year-end 2017 financial results after market close on Monday April 2, 2018, instead of March 29, 2018, as previously announced.

Acasta's senior management will host a conference call on Tuesday, April 3, 2018, at 9 a.m. ET to discuss the company's financial and operating results. Please dial 1-416-406-0743 or toll-free (Canada/United States) 1-800-806-5484 with passcode 1948342. To ensure your participation, please join approximately five minutes prior to the scheduled start of the conference call.

The conference call will be archived on the company's website and will be available for replay at 1-905-694-9451 or toll-free (Canada/U.S.) 1-800-408-3053 with passcode 8204336, expiring on May 15, 2018.

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