Park Lawn Corporation Announces C$40 Million Bought Deal Offering

TORONTO, ONTARIO--(Marketwired - Nov. 1, 2016) -

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Park Lawn Corporation (TSX:PLC) ("Park Lawn" or the "Company") announced that it has entered into an agreement with a syndicate of underwriters (the "Underwriters") led by National Bank Financial Inc., pursuant to which the Company will issue, on a "bought deal" basis, 2,500,000 common shares (the "Common Shares") at a price of $16.00 per Common Share for gross proceeds to the Company of $40,000,000 (the "Offering"). The Common Shares will be offered to the public by way of a short form prospectus.

The Company has also granted to the Underwriters an over-allotment option to purchase up to an additional 375,000 Common Shares at a price of $16.00 per Common Share, representing 15% of the size of the Offering. The over-allotment option may be exercised until 30 days following the closing of the Offering.

Park Lawn intends to use the net proceeds of the Offering to repay indebtedness under the Company's revolving credit facility, which will provide additional borrowing capacity to fund the Company's continued growth strategy, including through organic growth and acquisition opportunities, and for general corporate purposes.

The Company expects to file a preliminary short form prospectus relating to the Offering on November 7, 2016 and closing of the Offering is expected to occur on or about November 21, 2016. The Offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange. The Common Shares will be offered in each of the provinces of Canada, and if offered in the United States, by way of private placement in accordance with applicable registration exemptions.

The securities offered pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or to, or for the account or benefit of, U.S. persons.

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 (pre-need) 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 the Company 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 the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the Offering, the proposed use of proceeds of the Offering and the Company's continued growth strategy. The forward-looking statements in this news release are based on certain assumptions, and they 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 the Company'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, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.