~ Avigilon's sale and leaseback would secure
facility while freeing cash ~
VANCOUVER, CANADA, November 28, 2016 /CNW/ - Avigilon
Corporation ("Avigilon" or the "Company") (TSX: AVO),
provider of trusted security solutions, today announced it has
engaged CBRE Limited to market the Company's 9-storey office tower
located in downtown Vancouver,
Canada (the "Building") for a sale and leaseback (the
"Proposed Transaction").
As contemplated, the Proposed Transaction would give Avigilon
full use of the Building while reducing its debt, providing cash
for general working capital purposes, and enhancing shareholder
value. Avigilon purchased the Building in November, 2015 for CAD
$42M, and is currently renovating and
upgrading the facilities; CBRE has estimated the Building under the
Proposed Transaction could be valued in excess of CAD $100M.
"Vancouver's real estate market
is in a period of unprecedented growth," said Alexander Fernandes, Avigilon's Founder,
President, Chief Executive Officer, and Chairman of the Board. "The
Building is located in one of the most desirable downtown
locations. This presents a great opportunity for Avigilon to secure
the space needed to support our growing business and increase
shareholder value."
Purchasers interested in participating in the Proposed
Transaction should contact Kevin
Nelson, CBRE Senior Vice President, High Technology
Facilities Group, +1-604-662-5155.
About Avigilon
Avigilon Corporation provides trusted security solutions to the
global market. Avigilon designs, develops, and manufactures video
analytics, network video management software and hardware,
surveillance cameras, and access control solutions. To learn more
about Avigilon, visit avigilon.com.
© 2016, Avigilon Corporation. ™ indicates a trademark of
Avigilon Corporation. Other marks referred to herein are the
property of their respective owners.
For further information:
Investor Enquiries:
Darren Seed
Vice President, Capital Markets & Communications
T: (604) 629-5182
investors@avigilon.com
Media Enquiries:
T: (604) 629-5182
media@avigilon.com
Forward-Looking Statements
Certain information and statements in this news release
contain and constitute forward-looking information or
forward-looking statements as defined under applicable securities
laws (collectively, "forward-looking statements"). Forward-looking
statements normally contain words like 'believe', 'expect',
'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may',
'will', 'should', 'ongoing' and similar expressions, and within
this news release include any statements (express or implied)
respecting: Avigilon's ability to complete the Proposed Transaction
on acceptable terms, in a timely fashion, or at all; the effect
that completion of the Proposed Transaction may have on shareholder
value, and Avigilon's debt, cash and working capital
positions; the estimated value of the Building under the
Proposed Transaction; the suitability of the Building for
Avigilon's intended occupancy; and the future growth of Avigilon's
business.
Forward-looking statements are not guarantees of future
performance, actions, or developments and are based on
expectations, assumptions and other factors that management
currently believes are relevant, reasonable and appropriate in the
circumstances, including, without limitation, assumptions that:
Avigilon will pursue the completion of the Proposed Transaction on
terms acceptable to Avigilon, and that those terms will be within
the range of terms and valuation currently anticipated by Avigilon;
the potential effect that completion of the Proposed Transaction
may have on shareholder value, and Avigilon's debt, cash and
working capital positions, is relative to Avigilon's current share
price and Avigilon's current financial position; the business and
economic conditions affecting the commercial real estate market in
Vancouver will continue
substantially in their current state, and not be subject to a
downturn, during the time period in which Avigilon pursues the
Proposed Transaction; there will not be any unanticipated or
unexpected impediments to the pursuit or completion of the Proposed
Transaction; the factors associated with the suitability of the
Building for Avigilon's intended occupancy will remain as they
currently are; and the factors associated with the potential
development and growth of the business of Avigilon will remain as
they currently are.
Although management believes that the forward-looking
statements are reasonable, actual results could be substantially
different due to the risks and uncertainties associated with and
inherent to both: (i) Avigilon's business, as more
particularly described in the "Risk Factors" section
of Avigilon's Annual Information Form dated March 1,
2016, which is available under Avigilon's profile on SEDAR
at www.sedar.com; and (ii) the commercial real estate
market in Vancouver. Material
risks and uncertainties applicable to the forward-looking
statements set out herein include, but are not limited to,
unforeseen events, developments or factors causing any of the
aforesaid expectations, assumptions, and other factors ultimately
being inaccurate or irrelevant. Furthermore, completion of the
Proposed Transaction remains subject to, without limitation:
Avigilon and a potential purchaser agreeing to acceptable terms;
the purchaser securing necessary financing; completion of the
purchaser's due diligence; approval from Avigilon's lending
syndicate; and approval from Avigilon's Board of Directors. There
can be no assurance that a Proposed Transaction acceptable to
Avigilon will be consummated in a timely fashion or at all, nor
that the value of the Building under a consummated Proposed
Transaction will be as estimated in this news release. Although
Avigilon has attempted to identify factors that may cause actual
actions, events or results to differ materially from those
disclosed in the forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, predicted, estimated or intended. Also, many of the
factors are beyond the control of Avigilon. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Avigilon undertakes no obligation to reissue or update
any forward-looking statements as a result of new information or
events after the date hereof except as may be required by law. All
forward-looking statements contained in this news release are
qualified by this cautionary statement.
SOURCE Avigilon Corporation