TORONTO--(BUSINESS WIRE)--On February 6, 2018, Acasta Enterprises Inc. (TSX: AEF) (“Acasta” or the “Company”) announced it entered into a non-binding term sheet (the “Term Sheet”) with Martello Finance Company Limited to sell Stellwagen Group Limited (“Stellwagen”) and an amending agreement (the “Amending Agreement”) to its U.S. $150 million credit facility (the “Credit Facility”). The Amending Agreement required that Acasta repay U.S.$25 million to the lenders under the Credit Facility by no later than March 1, 2018, the funding of which was to be derived from the sale of Stellwagen or certain of its assets.
The Company announced today that the parties to the Term Sheet have been working cooperatively and intensively since the signing of the Term Sheet and the definitive documents are in the process of being finalized. To facilitate entering into definitive agreements with respect to the sale of Stellwagen, Acasta has entered into an extension agreement with the lenders under the Credit Facility to extend the deadline for payment of U.S.$25 million that was due today until March 7, 2018.
As previously disclosed, the Board of Directors of Acasta has appointed a special committee of independent directors (the “Independent Committee”) to, among other things, oversee the potential sale of Stellwagen and consider other alternatives to maximize value for the Company’s shareholders. The Independent Committee has retained the services of Blair Franklin Capital Partners Inc. to provide independent financial advice and has engaged Osler, Hoskin & Harcourt LLP as independent legal advisor to the Independent Committee.
Advisories:
Cautionary Note Concerning Forward Looking Statements
This news release may include forward looking statements. All such statements constitute forward looking information within the meaning of applicable securities law and are made pursuant to the “safe harbour” provisions of applicable securities laws. Forward looking statements may include, but are not limited to, statements about anticipated future events or results, including comments with respect to Company’s future business operations, financial performance and condition. Forward looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. The forward looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company’s business and strategic priorities and objectives as at the periods indicated and may not be appropriate for other purposes. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward looking statements contained in this news release, including, among other factors, those referenced in the section entitled “Risk Factors” in the Company’s annual information form for the year ended December 31, 2016, a copy of which is available on the SEDAR website at www.sedar.com under the Company’s profile. Forward looking statements contained in this news release are not guarantees of future performance and, while forward looking statements are based on certain assumptions that the Company considers reasonable, actual events could differ materially from those expressed or implied by forward looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and to not place undue reliance on forward looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, Acasta does not undertake any obligation to update publicly or revise any such forward looking statements, whether as a result of new information, future events or otherwise. These cautionary statements expressly qualify all forward looking statements in this new release.
