Empire Company Limited

Empire Company Limited

April 06, 2009 15:46 ET

Empire Company Announces $125 Million Equity Issue

STELLARTON, NOVA SCOTIA--(Marketwire - April 6, 2009) -


Empire Company Limited ("Empire" or the "Company") (TSX:EMP.A) today announced that it has entered into an agreement with a syndicate of underwriters led by Scotia Capital Inc., under which the underwriters have agreed to purchase, on a bought-deal basis, 2,513,000 Non-Voting Class A shares (the "Shares") at a price of $49.75 per Share for aggregate gross proceeds to Empire of $125,021,750. In addition, the Company has agreed to grant to the underwriters an option (the "Over-Allotment Option") to purchase up to an additional 200,000 Shares at a price of $49.75 per Share, on the same terms and conditions as the offering, exercisable any time, in whole or in part, until the date that is 30 days from the closing date of the offering. If the Over-Allotment Option is exercised in full, the total gross proceeds to Empire will be $134,971,750.

Closing of the offering is expected to occur on or about April 24, 2008 and is subject to customary regulatory approvals.

The net proceeds of the offering will be used to reduce indebtedness and for general corporate purposes.

The Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and state securities laws. Accordingly, the Shares may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Empire

Empire Company Limited (TSX:EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire's core businesses include food retailing and related real estate. With over $14 billion in annual revenue and approximately $5.8 billion in assets, Empire employs approximately 42,000 people directly and through its subsidiaries.

Cautionary Statement Regarding Forward-Looking Information

This news release contains certain forward-looking statements regarding Empire and the offering referred to herein, including the expected time of closing and anticipated use of proceeds. These statements are based upon the assumptions that the offering will be successfully completed on the terms described above, and that the proceeds of the offering can successfully be used as described above. Actual developments may differ as a result of risks relating to market conditions, global political uncertainties, investor demand and the timing of the offering. Empire disclaims any obligation to update any forward-looking statement contained in this news release except to the extent required by law.

Contact Information

  • Empire Company Limited
    Paul V. Beesley
    Executive Vice President and Chief Financial Officer
    (902) 755-4440