Park Lawn Income Trust

Park Lawn Income Trust
Park Lawn Company Limited

March 17, 2010 10:38 ET

Park Lawn Income Trust and Park Lawn Company Limited Announce Termination of Previously Announced Proposed Business Combination With a Subsidiary of LMS Medical Systems Inc.

TORONTO, ONTARIO--(Marketwire - March 17, 2010) - Park Lawn Income Trust ("Park Lawn") (TSX VENTURE:PLC.UN) and Park Lawn Company Limited ("PLCL") (CNSX:PRL) previously announced that they had entered into an agreement (the "Agreement") among Park Lawn, PLCL, LMS Medical Systems Inc. ("LMS") and its wholly-owned subsidiary, 2980622 Canada Inc. (formerly, LMS Medical Systems (Canada) Ltd.) ("Subco") pursuant to which such parties intended to, among other things, undertake a series of transactions (collectively, the "Transaction") as part of a plan of arrangement (the "Arrangement") under section 182(1) of the Business Corporations Act (Ontario) designed to result in (1) Park Lawn converting from an income trust to a corporation (the "Conversion"), and (2) PLCL indirectly owning all of the assets of Park Lawn and all of the issued and outstanding securities of Subco.

Termination of Agreement

It has been determined that certain proposed amendments to the Income Tax Act (Canada) relating to the taxation and conversion of income trusts announced in the Federal Budget released March 4, 2010 may frustrate certain material commercial objectives of the Agreement and that it would not be prudent nor in the best interests of Park Lawn or PLCL to proceed with the transactions contemplated by the Agreement. Park Lawn and PLCL have accordingly terminated the Agreement.

Conversion of Park Lawn and Business Combination among Park Lawn and PLCL to Proceed

Park Lawn intends to maximize the time during which the tax advantages of its current status can be enjoyed. Park Lawn accordingly intends to defer its conversion from an income trust to a corporation until on or about December 31, 2010. Park Lawn and PLCL have each confirmed their intention to participate in a transaction related to Park Lawn's ultimate conversion pursuant to which the businesses of Park Lawn and PLCL will be combined and various operating efficiencies will be achieved.

About Park Lawn

Park Lawn is a trust established to indirectly hold six cemeteries in the Greater Toronto Area and an interest in Bloorpark Developments Inc. Its units are listed on the TSX Venture Exchange.

About PLCL

PLCL owns a 2.9 acre parcel of land located at 57 Linelle Street and the house and land located at 53 Linelle Street, Toronto. PLCL also holds a promissory note from Park Lawn Limited Partnership. PLCL's common shares are listed on the Canadian National Stock Exchange.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Canadian National Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Park Lawn Income Trust
    Frank Mills
    Park Lawn Company Limited
    Frank Mills