September 16, 2014 09:00 ET
TORONTO, ONTARIO--(Marketwired - Sept. 16, 2014) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has entered into a non-binding term sheet with Landmark Equity Advisors, LLC ("Landmark"), whereby Landmark (through a vehicle to be formed (the "Acquiror")) will acquire from Aberdeen certain of its public company and private company portfolio investments, in each case consisting of equity and debt interests held by Aberdeen (the "Assets") for gross proceeds to Aberdeen of $29,000,000, subject to certain adjustment. In addition, Aberdeen has the right to an additional $2,000,000 earn out payable upon the achievement of certain milestones. Aberdeen will provide management services to the Acquiror.
Closing of the transaction remains subject to, among other things, the entering into of a final definitive agreement with respect to the transaction, approval from Landmark's Investment Committee, approval of the Board of Directors of Aberdeen and receipt of all necessary regulatory approvals with respect to the transaction.
Aberdeen intends to use substantially all of the net proceeds from the sale of the Assets for future investments in pre-IPO and/or public resource companies with undervalued high quality resources, in keeping with the current business model of Aberdeen. David Stein, President and CEO of Aberdeen stated, "We look forward to working together with Landmark in the upcoming weeks to finalize the transaction. We believe the strength of our existing portfolio will continue to generate upside for Aberdeen shareholders and are excited with the prospects of deploying the cash proceeds for future investments. Due to current market conditions, we believe we can acquire additional investments which are currently undervalued in order to generate significant long-term returns for our shareholders, and capitalize on the strong track record of our team investing in the mining industry."
It is anticipated that closing of the transaction will occur on or before October 15, 2014. Aberdeen has engaged Sixpoint Partners LLC to act as strategic advisors with respect to the proposed transaction. Landmark is being represented in the transaction by legal counsel from Kirkland & Ellis LLP and from Osler Hoskin & Harcourt LLP. Aberdeen is being represented in this transaction by legal counsel from Cassels Brock and Blackwell LLP.
About Aberdeen International Inc:
Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and/or (iii) operate in jurisdictions with low to moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook and Twitter: AberdeenAAB.
About Landmark Partners:
Landmark Partners is a private equity and real estate company specializing in secondary funds. Formed in 1989, the firm has one of the longest track records in the industry and is a leading source of liquidity to owners of interests in venture, mezzanine, buyout, and real estate limited partnerships. Landmark has formed 30 funds focused on venture capital, buyout, mezzanine and real estate partnerships over the last 24 years. These funds have been capitalized at more than $12.5 billion. Landmark is headquartered in Simsbury, Connecticut, and has offices in Boston, Massachusetts, New York, New York, and London, England
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the ability to complete the transaction, the anticipated timing with respect to the completion of the transaction, the ability of the Company to generate additional value for shareholders as a result of such transactions, if completed at all, the ability of the Company to enter into a definitive agreement with respect to the transaction or conclude the transactions, past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the Company's plan of business operations; and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.