Alaris Royalty Corp. Provides an Update Regarding Agility Health



CALGARY, ALBERTA--(Marketwired - Nov. 4, 2016) -

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Alaris Royalty Corp. ("Alaris" or the "Corporation") (TSX:AD) is providing an update today regarding Agility Health, LLC ("Agility").

Agility has been undertaking a strategic process (the "Agility Process") with the intention of repurchasing Alaris' preferred units in Agility (the "Alaris Repurchase"). During the Agility Process, Alaris agreed to defer the monthly distributions (the "Deferred Distributions") from Agility from March 2016 through September 2016. The distributions from Agility (US$254,901 per month) restarted as expected in October 2016 but the amount of previously Deferred Distributions remain outstanding. Alaris has now formally demanded that Agility repurchase the units (the "Agility Units") of Agility held by Alaris at a premium to Alaris' original cost as provided under our agreements with Agility. However, Alaris has indicated that it will refrain from exercising further rights and remedies available to it for a period of 90 days, subject to Agility continuing to meet certain conditions. Alaris intends to work with Agility to help facilitate a transaction that Agility is currently working on, which would see the Agility Units repurchased within 90 days, but for which no formal agreements have been finalized. The Corporation will provide further updates when necessary.

About the Corporation:

Alaris provides alternative financing to private company partners (the "Partners") in exchange for distributions with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Distributions from the Partners are adjusted each year based on the percentage change 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.

Forward-Looking Statements

Certain information set out in this press release, including information and statements that contain words such as "could", "intends", "will", "anticipates" and similar expressions and statements relating to matters that are not historical facts may contain forward-looking statements under applicable securities legislation, including statements regarding the repurchase of the Agility Units and Alaris' intention with respect to exercising its rights and remedies. By their nature forward-looking statements are subject to numerous risks, uncertainties and assumptions, some of which are beyond Alaris' control, including, without limitation a failure of Agility to complete the above noted transaction or any other transaction to repurchase the Agility Units or a failure of Agility to satisfy the conditions set out above. Additional information on risks that could affect the repurchase of the Agility Units and the operation of the Company and its Partners is set forth in Alaris Annual Information Form for the year ended December 31, 2015 available on www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of the Company could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Alaris will derive therefrom. Alaris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

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

Contact Information:

Alaris Royalty Corp.
Curtis Krawetz
Vice President, Investments and Investor Relations
(403) 221-7305
www.alarisroyalty.com


Back to News

Conditions for using this site

Alaris Royalty Corp. (“Alaris”) maintains the internet site as an informational service. This site is not intended to supplement or substitute for the legal disclosure for Alaris or for the prospectus disclosure related to a public offering of any of its securities in Canada. Please read the legal notice on the site before you proceed.

Your use of this site is in itself acceptance of the terms and conditions regarding use as stated in the Legal Notice.

U.S. Ownership and Trading Restrictions

To ensure compliance with U.S. securities laws, Alaris’ common shares are subject to a number of ownership and transfer restrictions. Purchases of Alaris common shares are permitted only by non U.S. persons, and in certain private placements to U.S. persons who are “Qualified U.S. Purchasers” and who are not “ERISA Persons”. Information concerning these ownership and transfer restrictions is included in the Investor section of this website under “Ownership and Transfer Restrictions - U.S. Persons.”

The information in this website does not constitute an offering for the sale of securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended..

Use of cookies

When you click Agree below, a small amount of data ("a cookie") will be written to your browser, which will enable you to review information contained on this website. The cookie is valid for two days after which you will be again prompted to accept the website legal notice. The use of cookies is very common on commercial websites and web browsers normally accept cookies. If you have turned this function off in your browser's preferences, you will need to turn it on to gain access to this portion of our website. Alaris Royalty Corp. respects your privacy and no personal information is collected or stored as part of this process.

Agree