TORONTO, ONTARIO -- (Marketwired) -- 04/02/13 -- Equity Financial Holdings Inc. ("EQI" or the "Corporation") (TSX: EQI), a Canadian financial services company, today announced the results from its Annual and Special Meeting of Shareholders held on April 2, 2013.
"We are pleased that our shareholders have approved the transaction with TMX Group," said Equity President & CEO, Paul G. Smith. "Given the significance of this strategic decision, we felt it was important for shareholders to have the opportunity to approve it. The sale of the transfer agent and corporate trust business provides us with the necessary capital to invest in our new strategy. We are excited about the growth potential for the company as we focus on the rapidly growing retail mortgage lending and deposit-taking business."
Under the terms of the transaction agreement, TMX Group will acquire Equity's transfer agent and corporate trust business for $64 million payable in cash at closing, subject to certain post-closing price adjustments. The finalization of the transaction is expected during the second quarter of calendar 2013 and remains subject to the closing conditions outlined in EQI's Management Information Circular dated February 28, 2013.
In addition to approving the transaction with the TMX Group by more than the requisite two-thirds needed, shareholders also voted to approve the Corporation's Shareholder Rights Plan and the renewal of the Employee Stock Option Plan (including all unallocated options thereunder). All of the incumbent directors were re-elected to the board, which are comprised of: Donald A. Wright, Paul G. Smith, Michael A. Gerrior, Bradley R. Kipp, Bernard J. le Duc, J. Allan Ringler, Elmer I. Kim, Natasha A. Sharpe and Thomas R. Spencer. Donald A. Wright was then re-elected Chairman of the Board by the directors. Shareholders also approved the reappointment of BDO Canada LLP as the Corporation's independent auditor and authorized the board to fix their remuneration.
About Equity Financial Holdings Inc.
Through its wholly owned subsidiaries, the Corporation provides transfer agent, corporate trust, foreign exchange and retail mortgage services to the corporate and institutional markets, and the retail mortgage market. Following the completion of the transaction with TMX Group, the Corporation will be a Canadian financial services company serving the alternative retail mortgage market through its federally regulated and wholly-owned subsidiary, Equity Financial Trust Company. Learn more at www.equityfinancialholdings.com.
Statements regarding Forward-Looking Information
Certain portions of this press release as well as other public statements by the Corporation contain "forward-looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward-looking statements", which may not be based on historical fact. Wherever possible, words such as "will", "plans," "expects," "targets," "continue", "estimates," "scheduled," "anticipates," "believes," "intends," "may," and similar expressions or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. Such forward-looking statements include, without limitation, statements regarding any information as to future financial or operating performance and other statements that express expectations or estimates of future performance, including statements regarding the Corporation's EBITDA and earnings expectations for the mortgage and deposit business, fee income, expense levels, the completion of the proposed sale of Equity's transfer agent and corporate trust services business to the TMX, including the expected timelines for completion, the expected use of proceeds therefrom and the anticipated effect of the sale transaction on its business, operations and financial results, the Corporation's expected need for regulatory capital, the expected timing of the Corporation's previously disclosed wind-down of its day-to-day retail foreign exchange operations and its expected impact on the Corporation's business, operations and financial results, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation's ability to complete strategic transactions and integrate acquisitions and other factors.
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