Oakville, Ontario-based Lorne Park Capital Partners Inc.said April 1 that it signed a share purchase agreement to purchase all of theoutstanding securities of Index Wealth Management Inc., an independentportfolio manager with offices in Vancouver, Calgary and Winnipeg.
After the closing of the transaction, Index WealthManagement is expected to amalgamate with Lorne Park Capital Partners' whollyowned subsidiary, Bellwether Investment Management Inc., a registered portfoliomanager and investment fund manager. Index Wealth Management will continue as adivision of Bellwether.
The transaction is expected to close on or about April 8,subject to customary conditions.
Under the share purchase agreement, Lorne Park Capital Partnerswill acquire the shares in Index Wealth Management in exchange for the issuanceof 1,375,000 common shares of Lorne Park Capital Partners and cashconsideration payable on closing and in two future installments payable in 12months and 18 months, subject to adjustment at each payment date. The totalpurchase price for the shares is expected to be approximately C$2.2 million,subject to adjustments.
The common shares of Lorne Park Capital Partners issuablepursuant to the transaction will be issued at 40 cents per common share,approximately equal to the six-month volume-weighted average price of thecommon shares of Lorne Park Capital Partners on the TSX Venture Exchange as ofDec. 31, 2015.
Lorne Park Capital Partners brings together boutiqueinvestment management and wealth advisory firms to deliver investment solutionsto affluent investors.
Index Wealth Management provides discretionary investmentmanagement services for individuals and foundations. It has approximately C$120million in assets under management.