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Crown Capital Announces Closing of Go Direct Sale Transaction
Crown Capital Announces Closing of Go Direct Sale Transaction Canada NewsWire CALG...
About this update from Crown Capital Partners, Inc.
[{"type":"text","content":"\n\n\nCrown Capital Announces Closing of Go Direct Sale Transaction\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\n\n\n\n\n\nCanada NewsWire\n\n\nCALGARY, AB, May 14, 2026 /CNW/ - As previously disclosed, on April 6, 2026, Crown Capital Partners Inc. (\"Crown\" or the \"Corporation\") (TSX: CRWN) entered into an agreement to sell the assets and business of its wholly-owned subsidiary, Go Direct Global Inc. (\"Go Direct\") to an employee-led group, subject to certain conditions (the \"GD Transaction\").\nWe are pleased to report that the GD Transaction closed effective today, May 14, 2026. Total consideration to be received by Crown and its subsidiaries in relation to the GD Transaction is $10.0 million, subject to customary closing adjustments, including $7.5 million of cash received at closing plus $2.5 million to be received over the subsequent 25 months.Of the cash proceeds received at closing from the GD Transaction, $7.3 million was applied as partial repayment of Crown's senior secured credit facility, including payment of the installment due on March 31, 2026. With this repayment, Crown has complied with the terms of the forbearance agreement signed on April 6, 2026 in respect of its senior secured credit facility and is no longer in default under this facility. Following this partial loan repayment, the remaining balance outstanding on this credit facility is approximately $8.7 million.The assets and business of Go Direct were sold to a private company controlled by Chris Johnson, President, CEO and director of Crown, and co-owned by other members of the senior management team of Go Direct. There was no change in the issued and outstanding securities of the Corporation as a result of the GD Transaction. To the knowledge of the officers and directors of Crown, there are no prior valuations in respect of Crown that relate to Go Direct or that are otherwise relevant to the GD Transaction.The GD Transaction is a \"related party transaction\" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") as th...