CALGARY, Aug. 17, 2015 /CNW/ - BrightPath Early Learning
Inc. ("BrightPath" or the "Company") (TSX-V: BPE), the leading
Canadian provider of quality early childhood education and care, is
pleased to announce that it has closed the sale of its McKenzie
Towne location in southeast Calgary to an affiliate of First Capital
Realty Inc.
The building, designed and built by BrightPath, was sold for
gross proceeds of $7.5 million in
conjunction with a surrender of the ground lease on which the
building is sited. The Company has maintained its long-term
presence in the McKenzie Towne community by entering into a
long-term lease for this same property. The transaction was
effected at very attractive pricing for a real estate land lease
transaction of this nature. With a capitalization rate of 6.76%,
the pricing validates the strength of BrightPath's operating and
financial covenant as a tenant.
The Company expects to report a gain on disposition of
approximately $1.8 million pursuant
to the sale. Furthermore, this transaction has created, after all
transaction expenses, approximately $7.3
million of incremental capital comprised of net cash
proceeds of $3.25 million and
$4 million of bank financing
available to be redeployed after repayment. This capital will be
used to generate incremental cash flow and surface shareholder
value from new initiatives. Such initiatives include the expansion
of the Company's growth pipeline and the purchase of BrightPath's
common shares which management and the board of directors believe
are significantly undervalued at the current market
price.
"The attractive pricing, gain on disposition and significant
capital surfaced from this transaction, along with the ongoing
impressive operating performance of the McKenzie Towne centre,
provide validation of the unrecognized value of both the Company's
owned real estate portfolio and the cash flow growth inherent in
our pipeline of new development projects. This is a significant
transaction that reflects BrightPath's commitment to pursuing
initiatives to surface shareholder value." said Mary Ann Curran, Chief Executive Officer of
BrightPath.
About BrightPath Early Learning Inc.
BrightPath Early Learning Inc. is a Canadian leader in child
care and early education with 52 locations in major markets across
the country. Meeting the highest standards in curriculum,
nutrition, technology and recreational programing, BrightPath is
committed to providing families with the very best child
development programs and care Canada has to offer.
For more information, please visit
www.BrightPathKids.com/corporate or contact Dale Kearns, President and CFO of BrightPath
Early Learning Inc. at (403) 705-0362 Ext. 406.
Forward-Looking Statements
Certain statements contained herein constitute forward-looking
statements regarding the future growth, results of operations,
performance and opportunities of the Company. Forward-looking
statements can generally be identified by the use of, but not
limited to, the following words: "plans", "expects" or "does not
expect", "budget", "scheduled", "estimate", "forecast", "pro
forma", "anticipate" or "does not anticipate", "believe", "intend",
"inferred", "potential" and similar expressions or statements that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements are not historical facts, but reflect the Company's
current expectations regarding future results or events based on
information currently available and what the Company believes to be
reasonable assumptions. All forward-looking statements are
qualified by these cautionary statements.
Forward-looking statements are subject to a number of risks,
assumptions and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or
implied by such forward-looking statements. Factors that could
cause actual results or events to differ materially from those
expressed, implied or projected include, but are not limited to,
general economic conditions, the Company's ability to meet and
maintain forecasted occupancy levels, general government policies,
continued availability of government child care subsidies to
parents, unexpected costs or liabilities related to acquisitions,
construction, environmental matters, legal matters, changes in
interest rates, credit spreads and the availability of financing.
In addition, please refer to the Risks and Uncertainties section of
the Company's annual Management's Discussion and Analysis. As such,
the Company gives no assurance that actual results will be
consistent with these forward-looking statements.
Readers should not place undue reliance on any such
forward-looking statements. These forward-looking statements are
made as of the date hereof. The Company undertakes no obligation to
publicly update or revise any such statement, reflect new
information or reflect the occurrence of future events or
circumstances, except as required by securities laws.
SOURCE BrightPath Early Learning Inc.