CALGARY, ALBERTA--(Marketwire - June 27, 2012) -
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Alaris Royalty Corp. (TSX:AD) ("Alaris" or the "Corporation") is pleased to announce that it has closed its previously announced short-form prospectus offering of common shares ("Common Shares") of the Corporation (the "Offering"), on a bought-deal basis, through a syndicate of underwriters (the "Underwriters") led by Acumen Capital Finance Partners Limited and including Cormark Securities Inc., Canaccord Genuity Corp. and National Bank Financial Inc., resulting in gross proceeds of $49,042,500. The Offering consisted of 2,260,000 Common Shares issued at a price of $19.50 per Common Share as well as an over-allotment option (the "Over-Allotment Option") which was exercised in full by the Underwriters, whereby they purchased an additional 255,000 Common Shares at the same price in order to cover over-allotments.
The net proceeds of the Offering will be used to reduce the Corporation's indebtedness under its $50,100,000 credit facility (the "Facility"), leaving a minimal amount drawn on the Facility following closing of the Offering.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States. This release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the offered securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About the Corporation:
Alaris provides alternative financing to the private companies (the "Private Company Partners") in exchange for royalties or distributions with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Royalties or distributions from the private company partners are structured as a percentage of a "top line" financial performance measure such as gross margin and same-store sales and rank in priority to the owners' common equity position.
This news release contains forward-looking statements. Statements other than statements of historical fact contained in this news release may be forward-looking statements. Many of these statements can be identified by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward looking statements are based will occur. In particular, without limitation, this news release contains forward looking statements regarding the use of the proceeds of the Offering and the indebtedness under the Facility after giving effect to the Offering (including the Over-Allotment Option).
Statements containing forward-looking information by their nature involve numerous assumptions and significant known and unknown facts and uncertainties of both a general and a specific nature. Key assumptions include, but are not limited to assumptions that: Canadian and U.S. economies will not deteriorate materially over the balance of 2012; that the Private Company Partners will continue to make distributions to Alaris as and when required; and the business of the Private Company Partners will continue to grow. In determining the Company's expectations for economic growth, management primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.
The forward-looking statements contained herein are subject to numerous known and unknown risks that may cause actual results to vary from those set forth in the forward-looking statements, including, but not limited to risks associated with: general economic conditions and changes in the financial markets; a change in the ability of the Private Company Partners to continue to pay Alaris' preferred distributions; the dependence of Alaris on the Private Company Partners; and changes in legislation or government regulations and the interpretations thereof. In addition, the information set forth under the heading "Risk Factors" in the Corporation's Annual Information Form dated March 14, 2012 (a complete copy of which can be found on SEDAR at www.sedar.com) identifies additional factors that could affect the operating results and performance of the Company and may cause the actual results of the Corporation to differ materially from those anticipated in forward-looking statements.
As forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and Alaris does not undertake or assume any obligation to update or revise such statements to reflect new events or circumstances except as expressly required by applicable securities legislation.