The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Filing Services Canada

Northern Financial Agrees to Debt Settlement with Jaguar Financial Corporation

Tuesday, June 11, 2013

Northern Financial Agrees to Debt Settlement with Jaguar Financial Corporation

18:36 EDT Tuesday, June 11, 2013

FSC / Press Release

Northern Financial Agrees to Debt Settlement with Jaguar Financial Corporation

Toronto, Ontario CANADA, June 11, 2013 /FSC/ - Northern Financial Corporation (NFC - TSX Venture), ("Northern Financial" or the "Company") is pleased to announce that it has agreed with Jaguar Financial Corporation ("Jaguar") to pay $107,865 in full settlement of the $541,328 debt and accrued interest owing by Northern Financial to Jaguar.

It is anticipated that this settlement of $0.20 on the dollar of the principal amount will be offered to other lenders of Northern Financial with the exception of its bank loan and one secured loan. As an alternative to a cash settlement, it is anticipated that Northern Financial will offer these other lenders the opportunity to receive payment of their loans including their accrued interest in common shares of Northern Financial. In order to offer the option of lenders receiving common shares, shareholder approval and regulatory approval will be required to carry out a consolidation of the issued shares of Northern Financial in order that any shares issued to eliminate debt will be done at the minimum issue price of $0.05 per share.

The independent directors of Northern Financial and Jaguar approved the settlement with no materially contrary views or abstentions.

Northern Financial currently owns 6,020,315 Jaguar common shares or approximately 5.5% of the issued Jaguar common shares and Vic Alboini, Chairman and Chief Executive Officer of Northern Financial and of Jaguar, owns or controls 15,267,238 Jaguar Shares, representing approximately 15.8% of the Jaguar Shares.

Jaguar relied upon the valuation and minority approval exemptions set forth in sections 5.5(a) and 5.7(1)(a) of Multi-lateral Instrument 61-101, respectively. Northern Financial relied upon the valuation and minority approval exemptions set forth in sections 5.5(g) and 5.7(1)(e) of Multi-lateral Instrument 61-101, respectively.

Disclosure of this transaction is being made less than 21 days prior to the expected date of the closing of the transaction due to the financial difficulties in which Northern Financial currently faces and the fact that the parties wanted to address these issues as soon as possible.

About Northern Financial Corporation

Northern Financial Corporation is a financial advisory firm and merchant bank, with a specialization in mergers and acquisitions, merchant banking investments, risk arbitrage merger and acquisition investments, financial restructurings, proxy solicitation and information agent services.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Filing Statement of the Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

Vic Alboini
647 352-8180

To view this press release as a PDF, please click on the following link:
http://www.usetdas.com/pr/northernfin06112013.pdf

Source: Northern Financial Corporation (TSX-V: NFC)
Maximum News Dissemination by FSCwire. http://www.fscwire.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections