MHC.UN Flagship Communities Real Estate Investment Trust

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, June 29, 2023 /CNW/ - Flagship Communities Real Estate Investment Trust (TSX: MHC.U) (TSX: MHC.UN) (the "REIT") announced today that it has re-established a US$50 million at-the-market equity program (the "ATM Program").

The ATM Program allows the REIT to issue from treasury, at its discretion, up to US$50 million of trust units of the REIT (the "REIT Units") to the public from time to time. Distributions of REIT Units pursuant to the ATM Program, if any, will be made in accordance with the terms of an equity distribution agreement dated June 28, 2023 (the "Equity Distribution Agreement") among the REIT, Canaccord Genuity Corp. and BMO Capital Markets. REIT Units sold under the ATM Program will be sold directly on the Toronto Stock Exchange, or such other recognized marketplaces to the extent permitted, at prevailing market prices at the time of sale, all in accordance with the terms of the Equity Distribution Agreement. The ATM Program will be effective until July 8, 2025, unless terminated earlier in accordance with the terms of the Equity Distribution Agreement. The REIT intends to use the net proceeds from REIT Units sold under the ATM Program, if any, to fund acquisitions, for repayment of indebtedness and for general working capital purposes.

The ATM Program is designed to provide the REIT with additional financing flexibility should it be required in the future. The volume and timing of distributions under the ATM Program, if any, will be determined at the REIT's sole discretion. Since the REIT Units distributed pursuant to the ATM Program will be distributed to the public at prevailing market prices at the time of sale, prices may vary among purchasers and during the period of distribution.

Following the lapsing of the REIT's previous short form base shelf prospectus dated May 7, 2021, the ATM Program has been re-established under the REIT's current short form base shelf prospectus dated June 7, 2023 (the "Base Shelf Prospectus"). The ATM Program has been re-stablished pursuant to a prospectus supplement dated June 28, 2023 (the "Prospectus Supplement") to the REIT's Base Shelf Prospectus, in each case filed with the securities regulatory authorities in each of the provinces and territories of Canada. Further details of the ATM Program are set out in the Prospectus Supplement. The Prospectus Supplement, Base Shelf Prospectus and Equity Distribution Agreement are available on SEDAR under the REIT's issuer profile at www.sedar.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The REIT Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act.

Flagship Communities Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been formed to own and operate a portfolio of income-producing manufactured housing communities located in Kentucky, Indiana, Ohio, Tennessee, Arkansas, Missouri, and Illinois, including a fleet of manufactured homes for lease to residents of such housing communities.

This press release contains statements that include forward-looking information within the meaning of Canadian securities laws, including the potential issuance, sale and distribution of REIT Units pursuant to the ATM Program, including the price, volume and timing of any distributions, and the intended use of the net proceeds from the ATM Program. In some cases, forward-looking statements can be identified by terms such as "may", "will", "could", "occur", "expect", "anticipate", "believe", "intend", "estimate", "target", "project", "predict", "forecast", "continue", or the negative thereof or other similar expressions concerning matters that are not historical facts.

These forward-looking statements reflect the current expectations of the REIT regarding future events. The REIT has based these forward-looking statements on certain assumptions about future events and trends. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REIT's internal expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties and may not prove to be accurate and certain objectives and strategic goals may not be achieved. A variety of factors, many of which are beyond the REIT's control, could cause actual events to differ materially from current expectations of events expressed or implied by such forward-looking statements, such as the risks identified in the REIT's current annual information form available at www.sedar.com, including under the heading "Risks and Uncertainties" therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made.

SOURCE Flagship Communities Real Estate Investment Trust