Leon's and The Brick announce completion of plan of arrangement

CALGARY, March 28, 2013 /CNW/ - Leon's Furniture Limited (TSX: LNF) and The Brick Ltd. (TSX: BRK) are pleased to announce today the completion of the previously announced plan of arrangement pursuant to which Leon's acquired all of the outstanding common shares of The Brick (the "Shares") for $5.40 per Share and all of the outstanding common share purchase warrants of The Brick (the "Warrants") were purchased for cancellation for $4.40 per Warrant (the "Arrangement").

Subject to the terms of the Arrangement, holders of Shares were permitted to elect to receive as consideration $5.40 in cash per Share or 0.0054 convertible debentures of Leon's (the "Convertible Debentures") per Share, and holders of Warrants were permitted to elect to receive as consideration $4.40 in cash per Warrant or 0.0044 Convertible Debentures per Warrant. As holders of Shares and Warrants have elected to receive an aggregate principal amount of Convertible Debentures in excess of the maximum of $100 million principal amount of Convertible Debentures to be issued under the Arrangement, those holders of Shares and Warrants will have the number of Convertible Debentures they elected to receive pro rated, with the balance of the consideration to which they are entitled under the Arrangement paid in cash.  Based on the elections received by the election deadline, it is expected that holders of Shares and Warrants that elected to receive Convertible Debentures will have approximately 21.85 percent of their consideration under the Arrangement satisfied through the delivery of Convertible Debentures.

With the completion of the plan of arrangement, the common shares and common share purchase warrants of The Brick will cease to be listed for trading on the Toronto Stock Exchange on or about April 1, 2013.

About Leon's

Leon's was founded in 1909 and is one of Canada's best-known home furnishings retailers offering great value on household furniture, mattresses, appliances and home electronics. Leon's has 79 stores in Newfoundland and Labrador, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, Nova Scotia, New Brunswick, and Prince Edward Island.

About The Brick

The Brick, which opened its first store in Edmonton, Alberta in 1971, has grown over the last 40 years to become one of Canada's leading retailers of household furniture, mattresses, appliances and home electronics.  The Brick has 231 stores operating under The Brick, United Furniture Warehouse, The Brick Mattress Store and Urban Brick banners.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities laws, including (but not limited to) statements concerning anticipated future events, results, circumstances, performance or expectations, that reflect management's current expectations and are based on information currently available to management of Leon's, The Brick and their respective subsidiaries. The words "may", "will", "should", "believe", "expect", "plan", "anticipate", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms, or other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters, identify forward-looking matters. The inability to successfully integrate the operations of the two companies and other factors discussed in documents filed with the securities commissions across Canada by Leon's and The Brick could cause actual results to differ materially from those discussed in the forward looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Leon's or The Brick to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Leon's and The Brick undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.

SOURCE: The Brick Ltd.

Dominic Scarangella
Vice-President and CFO
Leon's Furniture Limited
[phone]
[email protected]