TORONTO, Dec. 31, 2021 /CNW/ - Leon's Furniture Limited
(TSX: LNF) ("LFL", or the "Company") announced today
the preliminary results of its "modified Dutch auction" substantial
issuer bid to purchase (the "Offer") for cancellation up to
$200,000,000 of its common shares
(the "Common Shares") from holders of Common Shares
("Shareholders") for cash. The Offer expired at 5:00 p.m. (Eastern time) on December 30, 2021.
Based on the preliminary count by the TSX Trust Company, as
depositary for the Offer, the Company expects to take up and pay
for approximately 8,000,000 Common Shares at a price of
$25.00 per Common Share under the
Offer, representing an aggregate purchase price of approximately
$200,000,000 and 10.4% of the total
number of the Company's issued and outstanding Common Shares before
giving effect to the Offer. After giving effect to the Offer, LFL
expects to have 68,793,896 Common Shares issued and
outstanding.
An aggregate of approximately 9,813,872 Common Shares were
validly tendered and not withdrawn pursuant to auction tenders at
or below the purchase price and purchase price tenders. Since the
Offer was oversubscribed, Shareholders who made auction tenders at
or below the purchase price and purchase price tenders will have
the number of Common Shares purchased prorated following the
determination of the final results of the Offer (other than "odd
lot" tenders, which are not subject to proration). LFL currently
expects that Shareholders who made auction tenders at or below the
purchase price and purchase price tenders will have approximately
81.5% of their successfully tendered Common Shares purchased by the
Company.
The number of Common Shares to be purchased, the proration
factor and the purchase price under the Offer are preliminary.
Final results will be determined subject to confirmation by the
depositary of the proper delivery of the Common Shares validly
tendered and not withdrawn. Upon take up and payment of the Common
Shares purchased, the Company will release the final results.
The full details of the Offer are described in the offer to
purchase and issuer bid circular dated November 17, 2021, as well as the related letter
of transmittal and notice of guaranteed delivery, copies of which
were filed and are available on SEDAR at www.sedar.com.
This press release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell the Company's Common Shares.
Forward Looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities regulation. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely" or "potential" or the negative or
other variations of these words or other comparable words or
phrases, are intended to identify forward-looking statements. These
statements include, without limitation, statements regarding the
terms and conditions of the Offer, including the aggregate number
of Common Shares to be purchased for cancellation under the Offer,
the final purchase price under the Offer, the proration
factor and the number of Common Shares expected to be issued
and outstanding after completion of the Offer. The Company believes
the expectations reflected in the forward-looking statements in
this press release are reasonable but no assurance can be given
that these expectations will prove to be correct and such forward-
looking statements should not be unduly relied upon.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties that may cause
the results or events mentioned in this press release to differ
materially from those that are discussed in or implied by such
forward-looking information. These risks and uncertainties include,
but are not limited to, general, local economic, and business
conditions. All forward-looking information in this press release
speaks as of the date hereof. The Company does not undertake to
update any such forward-looking information whether as a result of
new information, future events or otherwise. Additional information
about these assumptions and risks and uncertainties is disclosed in
filings with securities regulators filed on SEDAR
(www.sedar.com).
About Leon's Furniture Limited
LFL is the largest retailer of furniture, appliances and
electronics in Canada. Our retail
banners include: Leon's; The Brick; Brick Outlet; and The Brick
Mattress Store. Finally, with The Brick's Midnorthern Appliance
banner alongside with Leon's Appliance Canada banner, this makes
the Company the country's largest commercial retailer of appliances
to builders, developers, hotels and property management companies.
The Company has 304 retail stores from coast to coast in
Canada under various banners. The
Company operates three websites: leons.ca, thebrick.com and
furniture.ca.
SOURCE Leon's Furniture Limited