/NOT FOR DISTRIBUTION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
*All amounts stated in USD, unless otherwise
stated.
TORONTO,
July 4, 2016 /CNW/ - Delavaco
Residential Properties Corp. ("Delavaco" or the
"Company") (TSXV: DVO.U) is pleased to announce the
completion of the previously announced Senior Secured Note
("SSN") maturity date extension. Approximately $12.3 million or 100% of the outstanding
principal amount of 7.5% SSN due June 30,
2016 have had their maturity date extended to December 31, 2017.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: Certain information in this news release constitutes
forward-looking statements under applicable securities law. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expect", "intend" and
similar expressions. Forward-looking statements in this news
release include, but are not limited to, statements regarding the
arrangements described above with Firm Capital, including the Asset
Management Agreement, the Maturity Date Extension, the possible
termination of the Asset Management Agreement, the proposed name
change, the proposed Rights Offering (and the proposed use of the
proceeds thereof), the proposed share consolidation and the
proposed disposition of homes in South
Florida and Atlanta, which
may not be completed within the estimated time frames specified,
and as described, above or at all. In the event that such steps are
not completed to the satisfaction of Firm Capital, the rebranding,
Board and senior management restructuring and new business focus
described above will likely be subject to amendment or may not
proceed, which could have a material adverse effect upon the
Company. Failure to complete the steps or any delays in their
implementation may have a material adverse affect upon the business
of the Company and its market value. There is no assurance that the
Company will be able to complete the disposition of the single
property disposition portfolio at anticipated values or at all or
that market conditions will support the debt and equity raises
contemplated by the Company. Failure to achieve these objectives,
including failure to receive all approvals in connection with the
Maturity Date Extension, will have a material and adverse effect
upon the Company. There is no assurance that the Maturity Date
Extension, the proposed name change, proposed share consolidation,
proposed reconstitution of the Board and senior management and the
proposed disposition of homes in South
Florida and Atlanta will
occur as described herein or at all. There is no assurance that the
proposed Rights Offering will occur as described herein or at all.
There is no assurance that the implementation of the steps, even if
completed as described above, will increase the market value of the
Company's securities, which is subject to numerous factors beyond
the Company's control. Forward-looking statements necessarily
involve known and unknown risks, including, without limitation,
risks associated with general economic conditions; adverse factors
affecting the U.S. real estate market generally or those specific
markets in which the Company holds properties; volatility of real
estate prices; inability to complete the single family property
disposition program or debt restructuring in a timely manner;
inability to access sufficient capital from internal and external
sources, and/or inability to access sufficient capital on
favourable terms; industry and government regulation; changes in
legislation, income tax and regulatory matters; the ability of
Delavaco to implement its business strategies; competition;
currency and interest rate fluctuations and other risks. Readers
are cautioned that the foregoing list is not exhaustive. Readers
are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. Certain financial
information presented in this press release reflect certain
non-International Financial Reporting Standards ("IFRS") financial
measures, which include NOI, FFO and AFFO. These measures are
commonly used by real estate investment companies as useful metrics
for measuring performance, however, they do not have standardized
meaning prescribed by IFRS and are not necessarily comparable to
similar measures presented by other real estate investment
companies. Delavaco believes that FFO and AFFO are important
measures of operating performance. The IFRS measurement most
directly comparable to AFFO is net income. These terms are defined
in Delavaco's Management's Discussion and Analysis for the Quarter
Ended March 31, 2016 filed on
www.sedar.com. Neither the 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 Delavaco Residential
Properties Corp. is available at www.delavacoproperties.com or
www.sedar.com.
SOURCE Delavaco Residential Properties Corp