Alaris Royalty Corp. Announces Sandbox Sale

About this update from Alaris Equity Partners Income Trust Trust Units Reg S 3c7

[{"type":"text","content":"\n\n\n\nAlaris Royalty Corp. Announces Sandbox Sale\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Feb. 28, 2020\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES.FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW./\n CALGARY, Feb. 28, 2020 /CNW/ - Alaris Royalty Corp. (\"Alaris\" or the \"Corporation\") (TSX: AD) is announcing today the sale (the \"Sandbox Sale\") of Sandbox Acquisitions, LLC (\"SA LLC\") and Sandbox Advertising Limited Partnership (\"SA LP\" and, together with SA LLC, \"Sandbox\") to a third-party buyer (the \"Buyer\").  As a result of the Sandbox Sale, Alaris received total consideration of approximately $32,609,236 (the \"Consideration\") consisting of:  (i) $20,003,644 for the senior debt (\"Senior Debt\") Alaris held in Sandbox; (ii) $1,916,903 for unpaid interest on the Senior Debt; (iii) $9,144,448 for a partial repurchase of preferred equity held by Alaris in SA LLC, including $4,115,000 escrowed for working capital adjustments and indemnity obligations (the \"Escrowed Cash\"); and (iv) accrued distributions on the preferred equity of $1,544,241.   Alaris may also receive up to an additional $2,000,000 (\"Earnout Proceeds\") pursuant to an earnout if certain financial performance criteria are satisfied. The Sandbox Sale closed on February 28, 2020.  Unless otherwise stated all references to dollars are references to United States dollars.\n\n \n \n\n \nThe aggregate payments to Alaris on closing, less the Escrowed Cash and Earnout Proceeds, equals total cash (\"Total Cash\") of $28,494,236.  The Earnout Proceeds and Escrowed Cash, if released to Alaris, will be paid out over the next 24 months and will be used to redeem additional preferred equity in SA LLC held by Alaris.    \nThe Sandbox Sale resulted in returns much lower than Alaris had initially anticipated, following a material reduction in the initial offer of the Buyer.  Based on the Consideration and the $20,209,77...

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