Annual Information Form Postmedia Network Canada Corp
Total Page:16
File Type:pdf, Size:1020Kb
ANNUAL INFORMATION FORM POSTMEDIA NETWORK CANADA CORP. November 25, 2020 TABLE OF CONTENTS GLOSSARY OF TERMS ..................................................................................................................................................... 1 CERTAIN REFERENCES, FORWARD-LOOKING STATEMENTS AND INDUSTRY INFORMATION ........................................ 3 CORPORATE STRUCTURE ............................................................................................................................................... 5 Name, Address, Incorporation and Constating Documents ............................................................................ 5 Intercorporate Relationships........................................................................................................................... 6 GENERAL DEVELOPMENT OF THE BUSINESS ................................................................................................................. 7 History of the Corporation .............................................................................................................................. 7 OVERVIEW OF THE BUSINESS ........................................................................................................................................ 9 General ............................................................................................................................................................ 9 Newsmedia Operations ................................................................................................................................. 10 Functional Operations ................................................................................................................................... 13 Competitive Conditions ................................................................................................................................. 16 Components .................................................................................................................................................. 17 Intangible Properties ..................................................................................................................................... 17 Cycles ............................................................................................................................................................. 18 Environmental Protection ............................................................................................................................. 18 Employees ..................................................................................................................................................... 18 Regulation ..................................................................................................................................................... 18 RISK FACTORS .............................................................................................................................................................. 19 DIVIDENDS ................................................................................................................................................................... 19 DESCRIPTION OF CAPITAL STRUCTURE ........................................................................................................................ 20 General .......................................................................................................................................................... 20 Rights upon Liquidation, Dissolution or Winding-Up .................................................................................... 20 Voting Shares................................................................................................................................................. 20 Variable Voting Shares .................................................................................................................................. 21 Coattail Provision .......................................................................................................................................... 21 Declaration as to Canadian Status ................................................................................................................. 22 SHAREHOLDER RIGHTS PLAN ....................................................................................................................................... 22 INDEBTEDNESS ............................................................................................................................................................ 29 MARKET FOR SECURITIES............................................................................................................................................. 31 Trading Price and Volume ............................................................................................................................. 31 DIRECTORS AND OFFICERS .......................................................................................................................................... 32 Name, Occupation and Security Holding ....................................................................................................... 32 Biographies .................................................................................................................................................... 33 Cease Trade Orders, Bankruptcies or Plans of Arrangement ........................................................................ 35 Penalties or Sanctions ................................................................................................................................... 36 Conflicts of Interest ....................................................................................................................................... 36 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ..................................................................................................... 36 Legal Proceedings .......................................................................................................................................... 36 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ................................................................ 36 Registration Rights Agreement ..................................................................................................................... 37 Second-Lien Notes ......................................................................................................................................... 37 (i) TRANSFER AGENT AND REGISTRAR ............................................................................................................................. 37 MATERIAL CONTRACTS ................................................................................................................................................ 37 INTERESTS OF EXPERTS ................................................................................................................................................ 38 AUDIT COMMITTEE INFORMATION ............................................................................................................................. 38 ADDITIONAL INFORMATION ........................................................................................................................................ 39 SCHEDULE “A” CHARTER OF THE AUDIT COMMITTEE (ii) GLOSSARY OF TERMS In this Annual Information Form, the following terms will have the meanings set forth below, unless otherwise indicated. Words importing the singular include the plural and vice versa and words importing any gender include all genders. “ABL Collateral” means the accounts receivable, cash, inventory and any related assets of Postmedia Network Inc. and the guarantors, which constitutes collateral for the ABL Facility on a first-priority basis, for the New First-Lien Notes on a second-priority basis and for the Second-Lien Notes on a third-priority basis. “ABL Facility” has the meaning ascribed to such term under “General Development of the Business – History of the Corporation”. “Annual Information Form” means this annual information form. “ArrangeCo” has the meaning ascribed to such term under “Corporate Structure - Name, Address, Incorporation and Constating Documents”. “Board” means the board of directors of Postmedia Network Canada Corp. “Business Day” means a day on which banks are open for business in Toronto, but does not include a Saturday, Sunday or a holiday in the Province of Ontario. “CAAT Pension Plan” has the meaning ascribed to such term under “General Development of the Business – History of the Corporation”. “CBCA” means the Canada Business Corporations Act. “CCAA” means the Companies’ Creditors Arrangement Act (Canada). “Canso” has the meaning ascribed to such term under “General Development of the Business – History of the Corporation”. “Chatham” has the meaning ascribed to such term under “General Development of the Business – History of the Corporation”. “Chatham LLC” has the meaning ascribed to such term under “General Development of the Business – History of the Corporation”. “Corporation” or “Postmedia” means Postmedia Network Canada Corp. and, if the context requires, its subsidiary, Postmedia Network Inc. “Dollars” or “$” means Canadian dollars. “Financial Statements” means Postmedia Network Canada Corp.’s consolidated financial statements for the years ended August 31, 2020 and 2019.