/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Dec. 9, 2019 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust"), (TSX-V: FCD.UN) is pleased
to announce that it has entered into an agreement with a syndicate
of underwriters led by Canaccord Genuity, CIBC Capital Markets, and
TD Securities, as joint bookrunners, to issue to the
public 3,000,000 trust units (the "Trust Units") of
FCPT at a price of $6.75 per Trust
Unit (the "Issue Price") for gross proceeds of
approximately $20 million. The Trust has also granted the
underwriters an over-allotment option to purchase up to an
additional 450,000 Trust Units at the Issue Price exercisable,
in whole or in part, at any time until 30 days following the
closing of the offering, to cover over-allotments. If the
over-allotment option is exercised in full, the gross proceeds of
the offering will be approximately $23 million.
The Trust Units will be issued pursuant to a prospectus
supplement that will be filed with the securities regulatory
authorities in all provinces of Canada under the Trust's base shelf prospectus
dated December 3, 2019 and may also
be offered by way of private placement into the United States pursuant to Rule 144A. The
net proceeds of the offering will be used to repay indebtedness and
for working capital and general trust purposes.
Since the beginning of 2019, the Trust has completed
$226 million in acquisitions
(inclusive of closing costs), comprised of four retail portfolios
for approximately $209 million (at
the Trust's proportionate interest), a multi-residential property
for approximately $11.2 million, and
two industrial properties for approximately $5.7 million (at the Trust's proportionate
interest).
The offering is scheduled to close on or about December 18, 2019, and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the TSX Venture
Exchange.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The securities
being offered have not been, and will not be, registered under the
United States Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States unless an exemption from
registration is available. This news release is for information
purposes only and does not constitute an offer to sell or a
solicitation of an offer to buy any securities of FCPT in any
jurisdiction.
DISTRIBUTION REINVESTMENT PLAN & UNIT PURCHASE
PLAN
The Trust has in place a Distribution Reinvestment Plan ("DRIP")
and Unit Purchase Plan (the "Plan"). Under the terms of the DRIP,
FCPT's Unitholders may elect to automatically reinvest all or a
portion of their regular monthly distributions in additional Trust
Units, without incurring brokerage fees or commissions. Under the
terms of the Plan, FCPT's Unitholders may purchase a minimum of
$1,000 of Trust Units per month and
maximum purchases of up to $12,000
per annum.
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term
value for Unitholders, through capital preservation and disciplined
investing to achieve stable distributable income. In partnership
with management and industry leaders, The Trust's plan is to co-own
a diversified portfolio of multi-residential, flex industrial, net
lease convenience retail, and core service provider professional
space. In addition to stand alone accretive acquisitions, the Trust
will make joint acquisitions with strong financial partners and
acquisitions of partial interests from existing ownership groups,
in a manner that provides liquidity to those selling owners and
professional management for those remaining as partners. Firm
Capital Realty Partners Inc., through a structure focused on an
alignment of interests with the Trust sources, syndicates and
property and asset manages investments on behalf of the Trust.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", and by discussions of strategies that involve risks and
uncertainties. The forward-looking statements are based on certain
key expectations and assumptions made by the Trust. By their
nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts,
projections and various future events will not occur. These risks
include, but are not limited to, risks associated with the ability
to satisfy regulatory, stock exchange and commercial closing
conditions of the offering, the uncertainty associated with
accessing capital markets and the risks related to FCPT's business,
including those identified in FCPT's annual information form for
the year ended December 31, 2018
under the heading "Risks and Uncertainties" (a copy of which may be
obtained at www.sedar.com). Although management of the Trust
believes that the expectations reflected in the forward-looking
statements are reasonable, there can be no assurance that future
results, levels of activity, performance or achievements will occur
as anticipated. Neither the Trust nor any other person assumes
responsibility for the accuracy and completeness of any
forward-looking statements, and no one has any obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events or such other factors which affect this
information, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Additional information about the Trust is
available at www.firmcapital.com or
www.sedar.com.
SOURCE Firm Capital Property Trust