Acasta Enterprises Inc. has completed the sale of its Stellwagen Group business unit to Martello Finance Co. Ltd., which will be indirectly owned by Douglas Brennan and certain other investors.

Acasta has used the approximately $35 million in proceeds to meet payment of $25 million owed by the company by March 31, under its $150 million credit facility, and to pay down additional amounts outstanding under the credit facility. With the closing of the deal, Acasta has reduced its overall bank debt to approximately $153 million, interim CEO Ian Kidson said in a statement.

As a result of the transaction, Acasta has reduced its share count to approximately 69.7 million common shares from approximately 95.7 million issued and outstanding common shares.

Acasta retained ownership of profit participating notes issued to Acasta by a subsidiary of Stellwagen and is working with its financial adviser to monetize the notes. Acasta will use proceeds from the sale of the notes to further pay down debt outstanding under the credit facility.