Alaris Royalty Corp.

Alaris Royalty Corp.

May 18, 2010 13:19 ET

Alaris Royalty Corp. Completes Additional KMH Funding and Provides Further Capital to LifeMark Health

CALGARY, ALBERTA--(Marketwire - May 18, 2010) - Alaris Royalty Corp. ("Alaris" or the "Corporation") (TSX:AD) is pleased to announce that it has closed an additional funding of $8,000,000 for LifeMark Health Limited Partnership ("LifeMark") pursuant to which Aalris acquired an additional 800,000 preferred limited partnership units in LifeMark. In addition, Alaris has closed the previously announced funding of an additional $2,000,000 for KMH Limited Partnership ("KMH"), pursuant to which Alaris acquired an additional 20,000 preferred limited partnership units in KMH, as contemplated under the partnership agreement with KMH. Alaris has also repaid approximately $5.3 million of its subordinated debt owing to one of its directors and its largest shareholder, Clayton H. Riddell or entities controlled by him.

Under the terms of the funding to LifeMark, Alaris' distribution from LifeMark will increase by approximately $1,142,850 on an annualized basis in the first twelve (12) months from the date of closing. In addition, under the terms of the funding to KMH, Alaris' distribution from KMH will increase by approximately $350,000 on an annualized basis in the first twelve (12) months from the date of closing.

"Alaris is very pleased to be funding two very stable companies in the health care industry. Both companies have demonstrated strong track records of profitability, operate in an industry where demand for their services are constant and growing and both have exciting growth opportunities that Alaris hopes to continue to fund," said Alaris President and CEO, Steve King.

About the Corporation:

Alaris provides alternative financing to private companies (throughout this press release, collectively identified as the "Private Company Partners" and individually as a "Private Company Partner") in exchange for royalties or distributions with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Royalties or distributions from the Private Company Partners are structured as a percentage of a "top line" financial performance measure such as gross margin and same-store sales and rank in priority to the owners' common equity position.

Forward-Looking Statements

This news 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 by LifeMark and KMH, the distributions to be received from LifeMark and KMH, and the expectations regarding the performance of LifeMark and KMH. The forward-looking statements are based on certain key expectations and assumptions made by Alaris, including, without limitation, assumptions concerning the general state of the North American economy, the use of proceeds, LifeMark and KMH's ability to continue paying the distributions to Alaris, as well as assumptions that distributions from the additional contribution will be made to Alaris as and when expected. Management of Alaris believes that such expectations and assumptions are 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.

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
    Manager, Investor Relations