Rainy Day Investments Ltd. Exchanges $25M of Principal Amounts of Loans Into New First Preferred Shares of Le Chateau Inc.

MONTREAL, QUÉBEC--(Marketwired - June 12, 2017) - Rainy Day Investments Ltd. (the "Acquiror") today announced that on June 9, 2017 it has exchanged approximately $25M of the principal amount of $41.2 million loans it has with Le Château Inc. (the "Issuer") for $25M face amount of newly created First Preferred Shares of the Issuer (the "Transaction").

Before the Transaction, the Acquiror had control and direct ownership over 6,856,377 Class B multiple voting shares of the Issuer (the "Class B Shares") representing approximately 22.9% of all of the issued and outstanding Class B Shares. Following the Transaction the Acquiror has control and direct ownership over over 6,856,377 Class B Shares representing approximately 22.9% of all of the issued and outstanding Class B Shares and 250,000 First Preferred Shares, representing 100% of all of the issued and outstanding First Preferred Shares. The aggregate presumed consideration paid for the 250,000 First Preferred Shares is $25M or $100 per First Preferred Share.

The First Preferred Shares were acquired by the Acquiror for investment purposes and not for the purpose of exercising control or direction over the Issuer.