Canterbury Park Ups Paragon Pharma Stake

Canterbury Park Capital has acquired around 58.2 million additional common shares of Paragon Pharmacies Ltd. (TSX: PGN), for around C$23.2 million. It now holds over 68 million shares, or a 69.9% ownership position.



Canterbury Park Capital GP L.P., on behalf of private equity funds of which it is the general partner (“Canterbury”), announced today that it has acquired 58,199,338 additional common shares (“Shares”) of Paragon Pharmacies Limited (TSX VENTURE: PGN) (“Paragon”), as a result of Canterbury’s agreement to convert certain convertible notes and subscribe for certain additional Shares, at a blended price of $0.4048 per Share. Prior to the proposed acquisition of these additional Shares, Canterbury owned 10,072,455 Shares. As a result, Canterbury now owns 68,271,783 Shares, representing approximately 69.9% of the issued and outstanding Shares. The additional Shares were acquired by private agreement from treasury.


Canterbury holds all of its Shares for investment purposes, and may acquire further Shares, or dispose of its holdings of Shares, both as investment conditions and other circumstances warrant.


The proposed transactions occurred as set out in the terms of a Note Conversion and Share Subscription Agreement dated November 3, 2008 between Canterbury and Paragon. Canterbury and Paragon continue to be parties to a number of agreements, including advisory agreements, whereby Canterbury provides advice to Paragon in return for a fee, and a registration rights agreement.


Canterbury is located at c/o Canterbury Park Management Inc., Suite 300, 1001 Corydon Avenue, Winnipeg Manitoba, R3M 0B6.