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Acasta Enterprises Inc
Symbol C : AEF
Shares Issued 70,215,298
Close 2018-05-30 C$ 2.06
Recent Sedar Documents

Acasta Enterprises completes JemPak sale

2018-06-01 09:37 ET - News Release

Mr. Ian Kidson reports

ACASTA ENTERPRISES COMPLETES SALE OF JEMPAK AND REDUCTION OF ITS INDEBTEDNESS

Acasta Enterprises Inc. has completed the previously announced sale of JemPak Corp. to a wholly owned subsidiary of Henkel AG & Co. KGaA.

"With the closing of this Transaction, Acasta has been able to significantly reduce its indebtedness and reduce the associated cost of borrowing on its remaining indebtedness," commented Ian Kidson, interim chief executive of the company. "We would like to thank our lenders for their constructive dialogue with us and assistance in implementing the closing of the transaction."

The net proceeds from the transaction of approximately $115-million were used primarily to pay down Acasta's indebtedness. Acasta has repaid approximately $77.3-million ($59-million (U.S.)) under its $150-million (U.S.) credit facility leaving only approximately $10-million (U.S.) in indebtedness to WFI Inc., an entity controlled by Charles Wachsberg and Richard Wachsberg.

In addition, Acasta has entered into an amending agreement with Canadian Imperial Bank of Commerce whereby it remains as the only lender to Apollo Health and Beauty Care Inc. in the amount of approximately $58-million which is secured by a first ranking charge over all property of Apollo as well as a pledge of all equity interests and indebtedness of Apollo held by Acasta. As of the date hereof, the company's aggregate indebtedness is approximately $74-million.

Canaccord Genuity Corp. served as financial adviser and Goodmans LLP acted as legal counsel to Acasta, respectively.

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