CHC Realty Capital Corp. Announces Completion of Qualifying Transaction
April 03 2014 - 5:40PM
Marketwired
CHC Realty Capital Corp. Announces Completion of Qualifying
Transaction
TORONTO, ONTARIO--(Marketwired - Apr 3, 2014) - CHC Realty
Capital Corp. ("CHC" or the "Company") (TSX-VENTURE:CHC.P) is
pleased to announce today that it has closed its previously
announced Qualifying Transaction, as defined under TSX Venture
Exchange ("TSXV") Policy 2.4 - Capital Pool Companies. As
disclosed in the Company's press release dated January 9, 2014 and
in its filing statement dated March 21, 2014 (the "Filing
Statement"), the Qualifying Transaction involved the acquisition of
the "Liberty Terrace" student housing property located at 335
Barrie Street in Kingston, Ontario (the "Property"), comprising 18
student beds and 1,108 square feet of ground floor commercial space
in close proximity to Queen's University. Further information
regarding the Property and the Qualifying Transaction is available
in the Filing Statement, which is accessible under the Company's
SEDAR profile at www.sedar.com.
The purchase price for the Property was $2,500,000, which the
Company satisfied through the assumption of the existing mortgage
on the Property in the principal amount of $1,260,253 and the
payment to the vendor of the balance of the purchase price of
$1,239,747 in cash from the Company's existing funds.
The Company has submitted final documentation with respect to
the Qualifying Transaction to the TSXV and, subject to the TSXV's
final approval, anticipates that it will be listed on the TSXV as a
Tier 2 Real Estate Issuer.
The closing of the Qualifying Transaction is intended to form
part of a series of transactions which will result in CHC carrying
on business as an owner and operator of student housing properties
located in Canada with an internalized executive management
platform and, at an appropriate time, the effective conversion of
CHC into a real estate investment trust focused on student housing,
subject to receipt of all necessary approvals, including that of
the TSXV.
Mark Hansen, President and CEO of CHC, commented "We are
excited about completing the Qualifying Transaction. We believe
there are tremendous opportunities in the student housing space.
While this is a small first step, we anticipate a very active time
ahead in working towards our goal of becoming the leading
consolidator of high quality student housing assets in Canada, and
look forward to sharing additional developments with our
shareholders as they progress."
The Company also wishes to correct an omission in the Filing
Statement. In Note 2(a) to the pro forma statement of financial
position attached as Appendix 3 to the Filing Statement, the pro
forma effective income tax rate applicable to the operations of CHC
following the completion of the Qualifying Transaction will be
approximately 26.5%.
Forward-Looking Information
This press release contains forward-looking information within
the meaning of Canadian securities laws. Such information includes,
without limitation, information regarding the completion of the
proposed transaction and the business strategies of CHC. Although
CHC believes that such information is reasonable, it can give no
assurance that such expectations will prove to be correct.
Forward-looking information is typically identified by words such
as "plans", "expects" or "does not expect", "is expected",
"estimates", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved, or are those, which, by
their nature, refer to future events. CHC cautions investors that
any forward-looking information provided by CHC is not a guarantee
of future results or performance, and that actual results may
differ materially from those in forward-looking information as a
result of various factors, including, but not limited to: (i) risks
associated with the business and industry in which CHC will be
participating, including limited operating history of CHC, general
business risks related to real property ownership and investment,
risks associated with acquisition strategy, investment
concentration, competition, reliance on key personnel, integration
of additional properties, development risks, litigation, government
regulation, environmental matters, illiquidity, potential
undisclosed liabilities associated with acquisitions, uninsured
losses and potential conflicts of interest; (ii) risks relating to
the financing of CHC such as those associated with debt financing,
interest rate fluctuations and failure to obtain additional
financing; and (iii) risks relating to the structure of CHC such as
dilution, potential volatility of share price, no guaranteed
returns and limited prior public market. The reader is referred to
CHC's initial public offering prospectus, the Filing Statement and
other continuous disclosure documents for a more complete
discussion of risk factors relating to CHC and their potential
effects, copies of which may be accessed through CHC's profile on
SEDAR at www.sedar.com.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities nor shall there by
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
Investors are cautioned that, except as disclosed in the
Filing Statement filed in connection with the Qualifying
Transaction, any information released or received with respect to
such transaction may not be accurate or complete and should not be
relied upon. Trading in the securities of a capital pool company
should be considered highly speculative.
The TSXV has in no way passed upon the merits of the
proposed Qualifying Transaction and has neither approved nor
disapproved the contents of this press release.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
CHC Realty Capital Corp.Mark HansenPresident and Chief Executive
Officer(647) 288-9355mhansen@chcrealty.caCHC Realty Capital
Corp.Robert WaxmanChief Financial Officer(647)
288-9375rwaxman@chcrealty.ca