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TORONTO, Feb. 1, 2016 /CNW/ - Lorne Park Capital Partners
Inc. (TSXV:LPC) ("LPCP") announced today that it has entered
into a non-binding Letter of Intent ("LOI") to purchase all
of the outstanding securities of INDEX Wealth Management Inc.
("INDEX"), an independent portfolio manager with offices in
Vancouver, Calgary and Winnipeg (the "Proposed
Transaction").
INDEX provides discretionary investment management and wealth
management services, maximizing the benefits of ETFs, for
individuals, foundations, and non-profit corporations in
Vancouver, Calgary and Winnipeg. As of December 31, 2015, INDEX had approximately
$120 million in assets under
management.
"We are confident that we have found a partner in INDEX that
shares similar perspectives on investment management and a
commitment to delivering tailored investment solutions to affluent
families," commented Robert Sewell,
Chief Executive Officer of LPCP and Bellwether.
"This proposed acquisition continues to enhance our presence
within the investment management industry by providing us with a
broader suite of investment options and additional resources that
will benefit our clients," said Alan
Fustey, President of INDEX.
"With the proposed addition of INDEX, the combined firm will
gain a national presence with offices from Toronto to Vancouver. This expanded presence will allow
us to better serve clients across Canada and allow us to work more effectively
with advisors nationally," said Steve
Meehan, Chairman of LPCP and Bellwether.
Proposed Transaction
The Proposed Transaction is at arm's length and would not
represent a reverse takeover of LPCP nor a fundamental acquisition
under the TSX Venture Exchange ("TSXV") policies and no
change of control of LPCP would result from the Proposed
Transaction.
The LOI contemplates that LPCP will acquire the shares in INDEX
in exchange for the issuance of 1,375,000 common shares of LPCP and
cash consideration payable on closing and in two future
installments on the dates that are 12 and 18 months after the date
of closing of the Proposed Transaction, subject to adjustment based
on INDEX's annualized revenue as of each payment date. As of
today's date, LPCP expects that the total purchase price will be
$2.25 million.
The common shares of LPCP issuable pursuant to the Proposed
Transaction are proposed to be issued at $0.40 per common share, being approximately equal
to the 6 month volume weighted average price of the common shares
of the LPCP on the TSXV, determined as of December 31, 2015, subject to any limits required
by the TSX Venture Exchange.
The Proposed Transaction is expected to close on or around
March 31, 2016, subject to a number
of conditions, including the negotiation of a definitive agreement,
due diligence, TSXV final acceptance, securities regulatory
approval and customary consents.
Assuming the closing of the Proposed Transaction, LPCP expects
that INDEX will amalgamate with LPCP's wholly owned subsidiary,
Bellwether Investment Management Inc. ("Bellwether"), a
registered portfolio manager and investment fund manager and INDEX
will continue as a division of Bellwether.
About Lorne Park Capital Partners Inc.
LPCP was created to bring together boutique investment
management and wealth advisory firms in order to deliver robust,
cost effective investment solutions to affluent investors,
foundations, estates and trusts. LPCP's unique strategy
creates better alignment between investment managers and wealth
advisors while providing them with additional resources to
accelerate their growth.
About Bellwether Investment Management Inc.
Bellwether is a boutique investment manager that offers tailored
investment solutions for affluent investors, foundations, estates
and trusts utilizing its proprietary "Disciplined Dividend Growth"
Investment Process. Bellwether provides discretionary investment
management focused on North American Dividend Growth investing and
is dedicated to serving the distinct needs of affluent families.
Bellwether's suite of investment solutions includes Canadian, US
and global equity and fixed income strategies. Bellwether is a
subsidiary of LPCP.
About INDEX Wealth Management Inc.
Index is an independent portfolio manager that provides
discretionary investment management and wealth planning services
for individuals, foundations and non-profit corporations. Index
manages client portfolios utilizing an investment philosophy which
maximizes the benefits of Exchange Traded Funds (ETFs) as its core
holdings which are often combined with equity option
strategies to enhance income or reduce volatility.
Neither the 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.
This news release contains certain forward-looking
statements. LPCP has tried, whenever possible to identify these
forward-looking statements using words such as "anticipates",
"believes", "estimates", "expects", "plans", "intends",
"potential", "may" and other similar expressions. These
statements reflect LPCP's current belief and are based upon
currently available information. Accordingly, such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause LPCP's actual
results, performance or achievements to differ materially from
those expressed in or implied by such statements. LPCP
undertakes no obligation to update or advise in the event of any
change, addition or alteration to the information contained in this
news release including such forward-looking statements, unless
otherwise required under applicable law.
SOURCE Lorne Park Capital Partners Inc.