CALGARY, March 28, 2013 /CNW/ - Leon's Furniture Limited
(TSX: LNF) and The Brick Ltd. (TSX: BRK) are pleased to announce
today the completion of the previously announced plan of
arrangement pursuant to which Leon's acquired all of the
outstanding common shares of The Brick (the "Shares") for
$5.40 per Share and all of the
outstanding common share purchase warrants of The Brick (the
"Warrants") were purchased for cancellation for $4.40 per Warrant (the "Arrangement").
Subject to the terms of the Arrangement, holders of Shares were
permitted to elect to receive as consideration $5.40 in cash per Share or 0.0054 convertible
debentures of Leon's (the "Convertible Debentures") per
Share, and holders of Warrants were permitted to elect to receive
as consideration $4.40 in cash per
Warrant or 0.0044 Convertible Debentures per Warrant. As holders of
Shares and Warrants have elected to receive an aggregate principal
amount of Convertible Debentures in excess of the maximum of
$100 million principal amount of
Convertible Debentures to be issued under the Arrangement, those
holders of Shares and Warrants will have the number of Convertible
Debentures they elected to receive pro rated, with the balance of
the consideration to which they are entitled under the Arrangement
paid in cash. Based on the elections received by the election
deadline, it is expected that holders of Shares and Warrants that
elected to receive Convertible Debentures will have approximately
21.85 percent of their consideration under the Arrangement
satisfied through the delivery of Convertible Debentures.
With the completion of the plan of arrangement, the common
shares and common share purchase warrants of The Brick will cease
to be listed for trading on the Toronto Stock Exchange on or about
April 1, 2013.
About Leon's
Leon's was founded in 1909 and is one of Canada's best-known home furnishings retailers
offering great value on household furniture, mattresses, appliances
and home electronics. Leon's has 79 stores in Newfoundland and Labrador, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, Nova
Scotia, New Brunswick, and
Prince Edward Island.
About The Brick
The Brick, which opened its first store in Edmonton, Alberta in 1971, has grown over the
last 40 years to become one of Canada's leading retailers of household
furniture, mattresses, appliances and home electronics. The
Brick has 231 stores operating under The Brick, United Furniture
Warehouse, The Brick Mattress Store and Urban Brick banners.
Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of applicable Canadian securities laws, including (but
not limited to) statements concerning anticipated future events,
results, circumstances, performance or expectations, that reflect
management's current expectations and are based on information
currently available to management of Leon's, The Brick and their
respective subsidiaries. The words "may", "will", "should",
"believe", "expect", "plan", "anticipate", "intend", "estimate",
"predict", "potential", "continue" or the negative of these terms,
or other expressions which are predictions of or indicate future
events and trends and which do not relate to historical matters,
identify forward-looking matters. The inability to successfully
integrate the operations of the two companies and other factors
discussed in documents filed with the securities commissions across
Canada by Leon's and The Brick
could cause actual results to differ materially from those
discussed in the forward looking statements. Reliance should not be
placed on forward-looking statements because they involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Leon's or The Brick
to differ materially from anticipated future results, performance
or achievements expressed or implied by such forward-looking
statements. Leon's and The Brick undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, other
than as required by applicable law.
SOURCE The Brick Ltd.
