Clarke Inc. announces increased investment in Royal Host Inc.

HALIFAX, April 12, 2013 /CNW/ - Clarke Inc. ("Clarke") (TSX: CKI CKI.DB.A) announces that it has acquired 290,900 shares of Royal Host Inc. at a price of $1.00 per Royal Host share ("Royal Host"), $2,799,000 principal amount of the 7.5% convertible debentures maturing September 2018 ("Series C Debentures"), convertible into 799,714 common shares, at a price of $900 per $1,000 of principal amount, and $2,288,000 principal amount of the 5.90% convertible debentures maturing June 2014 ("Series D Debentures"), convertible into 369,628 common shares, at a price of $900 per $1,000 of principal amount. On an as converted basis, these purchases represent 7.82% of the common shares of Royal Host.

Immediately after the transaction, Clarke owns the following securities of Royal Host: 5,635,468 common shares, $88,000 principal amount of the 6.0% convertible debentures maturing October 2015 ("Series B Debentures"), convertible into 18,487 common shares, $3,075,000 principal amount of the Series C Debentures, convertible into 878,571 common shares, and $3,042,000 principal amount of the Series D Debentures, convertible into 491,438 common shares. On an as converted basis, such securities represent 37.17% of the common shares.

The purchase of the Royal Host shares and debentures by Clarke was made for investment purposes.  Clarke may, from time to time, acquire additional shares or debentures of Royal Host, dispose of some or all of the existing or additional shares or debentures of Royal Host, or continue to hold the shares and/or debentures of Royal Host in the normal course of Clarke's investment activities.

About Clarke

Halifax-based Clarke Inc. invests in undervalued businesses and participates actively where necessary to enhance performance and increase return. Clarke's securities trade on the Toronto Stock Exchange (CKI, CKI.DB.A); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.

Forward-Looking Statements

This press release may contain or refer to certain forward-looking statements relating, but not limited to, Clarke's expectations, intentions, plans and beliefs with respect to Clarke. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. These forward-looking statements include, but are not limited to, statements regarding the trading price of the Company's securities not fully reflecting the value of the Company's business.

Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Clarke to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Risks and uncertainties include, among others, the Company's investment strategy, legal and regulatory risks, general market risk, potential lack of diversification in the Company's investments, and interest rates and foreign currency fluctuations. Although Clarke has attempted to identify important factors that could cause actual actions, events or results or cause actions, events or results not to be estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Other than as required by applicable Canadian securities laws, Clarke does not update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.

SOURCE: CLARKE INC.