Alaris Royalty Corp.

Alaris Royalty Corp.

October 22, 2009 09:09 ET

Alaris Royalty Corp. Closes its Previously Announced Public Offering of Units

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2009) - Alaris Royalty Corp. ("Alaris" or the "Corporation") (TSX:AD) is pleased to announce that it has closed its previously announced short-form prospectus offering of units ("Units") of the Corporation (the "Offering"), on a bought-deal basis, through a syndicate of underwriters (the "Underwriters") led by Acumen Capital Finance Partners Limited and including CIBC, Cormark Securities Inc., HSBC Securities (Canada) Inc. and Canaccord Capital Corporation, resulting in gross proceeds of $13,800,000. The Offering consisted of 2,300,000 Units (of which 300,000 were issued pursuant to an over-allotment option granted to the Underwriters that was exercised in full) issued at a price of $6.00 per Unit.

Each Unit consists of one common share of the Corporation (a "Common Share") and one half of a common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to subscribe for one additional Common Share ("Warrant Share") at a price of $7.50 per Common Share. The Warrants will expire twenty-four (24) months after the closing date of the Offering, subject to a mandatory exercise if, anytime after twelve (12) months from the closing date of the Offering, the volume weighted average price of the Common Shares is above $9.00 per Common Share for 20 consecutive trading days.

The net proceeds of the Offering will be contributed to LifeMark Health Limited Partnership ("LifeMark") in support of its growth program at a yield of 18.2% for the first year after Alaris' contribution.

As part of the Offering, Clayton Riddell, a director and shareholder of the Corporation, acquired 760,000 Units. Following the Offering Mr. Riddell owns, directly and indirectly, approximately 32% of the common shares of Alaris.

Stephen W. King, President and Chief Executive Officer of Alaris noted, "We are thrilled to have received such a strong response on our offering. Increasing the size of the original offering and having the full overallotment option excercised not only allows us to make a more meaningful contribution to LifeMark, it underscores the positive momentum that our business is currently enjoying."

The securities offered pursuant to the Offering have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent registrations or an exemption from the registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Alaris

The Corporation provides alternative financing for a diversified group of private businesses ("Private Company Partners") in exchange for royalties or distributions from the Private Company Partners, with the principle objective of generating stable and prediction cash flows for dividend payments to its shareholders. Royalties or distributions from the Private Company Partners are structured as a percentage of "top line" financial performance measures such as gross margin and same store sales and rank in priority to the owners, and equity position.

Forward Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating to the use of proceeds of the Offering, the yield to be received by Alaris from the contribution to LifeMark and the expiry date of the Warrants. The forward-looking statements are based on certain key expectations and assumptions made by Alaris, including, without limitation, assumptions concerning the use of proceeds and the yield to be received from the contribution to LifeMark, which expectations and assumptions management of Alaris believes to be reasonable at this time. Although Alaris believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking statements and information as Alaris can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Additionally, the intended use of the proceeds of the Offering by Alaris may change if the board of directors of Alaris determines that it would be in the best interests of Alaris to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and Alaris undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Alaris Royalty Corp.
    Curtis Krawetz
    Investor Relations
    (403) 221-7305