Tuckamore Capital Management Inc.
TSX : TX
TSX : TX.DB.B

Tuckamore Capital Management Inc.

March 10, 2015 20:33 ET

Tuckamore Provides Update on Possible Indemnity Claim by Brompton Corp.

TORONTO, ONTARIO--(Marketwired - March 10, 2015) - Tuckamore Capital Management Inc. (TSX:TX)(TSX:TX.DB.B) ("Tuckamore" or the "Company") has been advised by Brompton Corp. ("Brompton") that Brompton has received notices of reassessment (the "Reassessments") from the Canada Revenue Agency (the "CRA") in which the CRA has denied the deduction to Brompton of certain non-capital losses and other tax attributes in computing Brompton's income for the 2010 to 2014 taxation years.

Tuckamore previously announced, in September 2014, that it had been notified by Brompton that in the event that Brompton is subject to taxes assessed by CRA or incurs losses or costs associated with the CRA's review, it will be seeking indemnification for approximately 40% of these taxes, losses or costs pursuant to agreements entered into by Tuckamore Holdings LP.

Tuckamore Holdings LP, a wholly-owned subsidiary of Tuckamore, previously held approximately 40% of the outstanding shares of Brompton. Tuckamore Holdings LP sold its interest in Brompton in September 2011.

Brompton has recently announced that, based on the Reassessments, the total additional liability for tax, interest and penalties for the 2010 to 2014 taxation years is approximately $11.8 million, exclusive of legal costs and other costs. Brompton also notes in its announcement that it remains of the view that its tax filing position is appropriate and does not believe any additional assessment of income tax by CRA is warranted, that it intends to vigorously defend its position, and that legal proceedings through the relevant courts could take considerable time to resolve.

Tuckamore continues to monitor the situation involving Brompton, including its alternatives in respect of any potential claim for indemnification. The Company intends to follow and participate in the conduct of any negotiations, objections, appeals or other tax-related proceedings relating to the periods during which it was, indirectly, a shareholder of Brompton and to exercise all rights and remedies that it may have in respect of any claims brought by Brompton against Tuckamore Holdings LP for indemnification.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements based on current expectations, including but not limited to Tuckamore's intentions with respect to the Reassessments and claims for indemnification. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Tuckamore's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com. Additional important factors that could cause actual results to differ materially include, but are not limited to, the outcome of the Reassessment, including any objections or appeals by Brompton. Readers are cautioned that the foregoing is not exhaustive. Although the forward-looking statements are based on what management considers to be reasonable assumptions based on information currently available to it, there can be no assurance that actual events or results will be consistent with these statements, and management's assumptions may prove to be incorrect. Forward-looking statements are not guarantees of future performance. In light of the significant uncertainties inherent in the forward-looking information included herein, any such forward-looking information should not be regarded as representations by Tuckamore that its objectives or plans will be achieved. Investors are cautioned not to place undue reliance on any forward-looking information contained herein. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. In addition, these forward-looking statements relate to the date on which they are made. Tuckamore disclaims any intention or obligation to update or revise any forward-looking statements or the foregoing list of factors, whether as a result of new information, future events or otherwise, except to the extent required by law.

About the Company

Tuckamore has investments in 7 businesses representing a diverse cross-section of the Canadian economy.

SOURCE: Tuckamore Capital Management Inc.

Contact Information