TORONTO, ONTARIO--(Marketwired - Nov. 4, 2013) - Park Lawn Corporation ("Park Lawn" or the "Company") (TSX VENTURE:PLC) announced today that it has filed a preliminary short-form prospectus in each of the provinces of Canada, except Québec, for an offering of common shares in a minimum amount of $6,000,000 and a maximum amount of $9,000,000 (the "Offering").
The Offering will be made on a best-efforts basis pursuant to an agency agreement to be entered into between Park Lawn and a syndicate of agents led by Mackie Research Capital Corporation and including Macquarie Private Wealth Inc. (the "Agents"). The Agents will also have the option to increase the size of the Offering by an additional 15% at any time up to 30 days following the closing date. Closing is expected to occur in November, 2013. The Offering price will be determined prior to filing the final short form prospectus.
The net proceeds from the Offering will be used by Park Lawn to construct a new mausoleum at its Westminster Cemetery, Crematorium & Mausoleum, and assuming the maximum Offering amount, the balance shall be used for strategic acquisitions.
The Offering is in furtherance of management's strategy for the business, which includes geographic expansion outside of the Greater Toronto Area, increased partnerships with independent operators in the industry, optimization of product offerings and the continued build-out of inventory at existing properties. This strategy has been implemented since de-trusting in December of 2010, with the Harmonia acquisition, the lease arrangement with the Brampton Crematorium and Visitor Centre, and the build-out of additional inventory at Park Lawn and Sanctuary Park cemeteries.
Park Lawn also announces the resignation of Jeffrey Burchell as a Director. Andrew Clark, C.E.O. of Park Lawn stated: "In his short time on the Board of Park Lawn, Jeff's insights and perspective proved extremely valuable. We wish to thank him for his service." Mr. Burchell elected to resign in order to allow his employer, Aston Hill Financial Inc., to participate in the Offering.
In conjunction with the filing of the short-form preliminary prospectus, Park Lawn has also filed a revised annual information form to update its regulatory filings.
About Park Lawn
Park Lawn Corporation provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold to people on a pre-planned basis (pre-need) or at the time of a death (at-need). The Company owns and operates six cemeteries in the Greater Toronto Area, operates the crematorium at the Brampton Crematorium and Visitor Centre. The Harmonia business of the Company currently operates in Quebec City, Laval, Saint-Apollinaire and Montreal. Park Lawn's common shares are listed on the TSX Venture Exchange under the symbol "PLC". The Company is the only Canadian publicly listed cemetery, funeral and cremation business. Park Lawn makes monthly dividend payments to its shareholders. The monthly dividend has been paid each month since January, 2011 and is currently $0.038 per share ($0.46 per share on an annual basis).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward looking information. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or to be achieved and any other similar expressions. In particular, this news release contains forward-looking statements in respect of the use of the net proceeds from the Offering and the completion and timing of the Offering. These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading "Risks Factors" in the Company's revised annual information form available on www.sedar.com. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, the Company does not undertake any obligation to update forward-looking information even if circumstances or management's estimates or opinions should change. Readers should not place undue reliance on forward-looking information.