TORONTO, ONTARIO--(Marketwired - Sept. 12, 2016) - Today Park Lawn Corporation (TSX VENTURE:PLC) ("PLC") announced that it has reached an agreement with Park Lawn Company Limited (the "Holder") to settle a promissory note (the "Note") previously issued by Park Lawn Limited Partnership, a wholly-owned subsidiary of PLC, in favour of the Holder.
The Note was issued on September 15, 2006 to the Holder in connection with the conversion of the PLC's business from an income trust into a corporate structure. The Holder is a reporting issuer that, prior to 2006, owned certain cemetery assets now owned by PLC.
The Note bore interest at the rate of 5.5% and had an initial term of 10 years from the original date of issuance, which was to automatically renew for a further term of 10 years at an interest rate of 1.25% above the interest rate for a 10 year Government of Canada bond at the time of renewal. The Note was to be repaid in full on September 15, 2026.
Following the closing of PLC's new bank financing arrangement with National Bank of Canada on July 29, 2016, PLC determined to settle the Note in advance of the renewal of its term. PLC prepaid $1 million of the Note in July 2016 and, subject to the approval of the TSX Venture Exchange (the "TSXV"), will settle the balance of the Note (approximately $4,096,500 less a discount, to be determined on or about the date of closing) in the form of PLC common shares at an implied price of $12.97 per share. Closing is expected to occur on or about September 15, 2016.
About Park Lawn Corporation
Park Lawn Corporation provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold on a pre-planned basis (preneed) or at the time of a death (at-need). PLC and its subsidiaries own and operate 34 cemeteries in Ontario and Michigan and 22 funeral homes, chapels and planning offices in Quebec, Ontario, Manitoba and Saskatchewan. PLC's Harmonia business currently operates under license in the province of Quebec.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on PLC's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the settlement of the Note. The forward-looking statements in this news release are based on certain assumptions, including without limitation that the TSXV will authorize the issuance of common shares of PLC in connection with the settlement of the Note. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in PLC's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, PLC assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.