VANCOUVER, British Columbia, Aug. 31, 2022 (GLOBE NEWSWIRE) -- Dominion Lending Centres Inc. (TSX:DLCG) (“DLCG” or the “Corporation”) is pleased to announce that it has completed a sale of its 58.4% interest in Club16 Limited Partnership (“Club16”) for aggregate gross proceeds of $18.0 million (the “Purchase Price”) to Club16 management (the “Purchaser”). The Purchase Price is comprised of: (i) a cash payment of $16.5 million; and (ii) a non-interest-bearing promissory note issued by the Purchaser for $1.5 million (the “Promissory Note”). The Promissory Note is to be paid in 24 equal monthly payments of $62,500, with the first monthly payment commencing on August 1, 2023. The Corporation has used the cash proceeds from the sale to repay corporate debt.

Gary Mauris, Chairman and Chief Executive Officer of the Corporation, commented: “We are pleased to facilitate the sale of our interest in Club16 back to Chuck Lawson, Carl Ulmer and Trevor Linden. Since acquiring the interest in Club16 in 2016, the Corporation has completed a significant reorganization with a focus on DLC as the Corporation’s core business. As such, the Corporation had reported its investment in Club16 as a non-core asset and believes the sale further simplifies our business and our financial reporting. Chuck, Carl and Trevor have been outstanding partners for over five years and we wish them the best as they continue to grow Club16 into a market-leading fitness company in British Columbia.”       

About Dominion Lending Centres Inc.

The DLC Group is Canada’s leading network of mortgage professionals. The DLC Group operates through Dominion Lending Centres and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. The DLC Group’s extensive network includes ~7,750 agents and 530 locations. Headquartered in British Columbia, the DLC Group was founded in 2006 by Gary Mauris and Chris Kayat.

Contact information for the Corporation is as follows: