|By Marketwired .||
|June 30, 2014 04:50 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 06/30/14 -- Park Lawn Corporation (TSX VENTURE:PLC) (the "Company" or "Park Lawn") today announced that it has sold certain cemetery and funeral assets in the province of Quebec to two limited partnerships led by Harmonia's founder, Yvon Rodrigue, and including a number of Harmonia's original shareholders, in addition to new Quebec-based investors.
The sale of these assets completes the restructuring of the Harmonia division that the Company has been working on for some time. Under the terms of the agreement, each of the limited partnerships (Services Funeraires Chaudiere-Appalaches, S.E.C. or "SFCA" and Heritages S.E.C. or "HIN") has acquired assets, and assumed liabilities, from Park Lawn and will continue to operate the Harmonia business in the Quebec market using the Harmonia name, which SFCA and HIN respectively will license from Park Lawn for an initial term of 40 years.
Park Lawn has also agreed to settle the notes due that were assumed when the Company acquired Harmonia for their current market value of $517,000. The balance of the notes will be cancelled by Park Lawn, as will the rights to acquire Park Lawn common shares that were also created at the time of the Harmonia acquisition. The Company has also agreed to invest (by way of loan) an aggregate of $150,000 in SFCA and HIN for working capital purposes.
Andrew Clark, CEO of Park Lawn commented, "We are pleased that, after a considerable amount of effort and energy, we have been able to restructure the Harmonia business in a way that returns the operation to a local ownership group, which is consistent with our strategy of partnering with experienced operators in their local markets. This transaction should remove a considerable amount of risk from Park Lawn's operations, while also ensuring our interests remain aligned with our partners, led by Mr. Rodrigue."
About Park Lawn
Park Lawn Corporation provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold to people on a pre-planned basis (pre-need) or at the time of a death (at-need). The Company owns and operates six cemeteries in the Greater Toronto Area and operates the crematorium at the Brampton Crematorium and Visitation Centre. The Company also owns 50% of Amety Ltd, which operates Tubman/Cadieux Funeral Homes in Ottawa and Western Quebec. The Harmonia business of the Company currently operates in Quebec City, Saint-Apollinaire, Gatineau and St. Georges under license. Park Lawn's common shares are listed on the TSX Venture Exchange under the symbol "PLC". The Company is the only Canadian publicly listed cemetery, funeral and cremation business. Park Lawn makes monthly dividend payments to its shareholders. The monthly dividend has been paid each month since January, 2011 and is currently $0.038 per share ($0.46 per share on an annual basis.)
This news release contains forward-looking statements within the meaning of Canadian securities laws, including statements regarding the proposed impact of the Harmonia restructuring. The terms "should", "expects", "believe", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Park Lawn in light of its experience and other factors that it believes are appropriate in the circumstances, including its expectations regarding the costs and benefits of the proposed restructuring. Many factors could cause Park Lawn's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including the risk factors relating to Park Lawn's business and environment referenced in the "Risk Factors" section of Park Lawn's Annual Information Form (a copy of which may be obtained at www.sedar.com). These factors should be considered carefully, and readers should not place undue reliance on Park Lawn's forward-looking statements. Park Lawn has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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.
Park Lawn Corporation
Chairman & Chief Executive Officer
(416) 233-8155 (FAX)