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 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,
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