TORONTO, Dec. 15, 2016 /CNW/ - Firm Capital American
Realty Partners Corp. (the "Company"), (TSXV : FCA.U) is
pleased to announce that it has closed its previously announced
rights offering (the "Rights Offering") issuing an aggregate
of 62,933,860 common shares at a subscription price of US$0.16 per common share for gross proceeds of
approximately US$10.0 million.
Holders of rights subscribed for an aggregate of 42,748,017
common shares pursuant to the exercise of the basic subscription
privilege under the terms of the Rights Offering of which
24,027,597 were subscribed for by certain insiders of the Company
as a group and 18,720,420 were subscribed for by all other rights
holders as a group.
An additional 7,361,993 common shares were issued pursuant to
the exercise of the additional subscription privilege under the
terms of the Rights Offering. No such shares were issued to
insiders of the Company.
An aggregate of 12,823,850 common shares were issued by the
Company to the stand-by purchasers pursuant to the terms of their
stand-by commitment agreement with the Company.
As of the closing date of the Rights Offering, the Company has a
total of 125,867,720 common shares issued and outstanding. The
Company did not pay any finders fees or commissions in connection
with the distribution of securities under the Rights Offering.
The Company intends to immediately use a portion of the net
proceeds of the Rights Offering to close the previously announced
New York City Joint Venture Investment on or about December 17, 2016 and use the remaining net
proceeds for future acquisitions and general corporate purposes. In
addition, the Company is working towards completing the previously
announced share consolidation that was approved at the Company's
Annual and Special Meeting of Shareholders.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm
Capital American Realty Partners Corp. focuses on capital
partnership investing in U.S. income producing real estate &
mortgage debt investments.
The Company is focused on the following investment
platforms:
- Income Producing Real Estate Investments: Acquiring
income producing U.S. real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Company or in joint-venture partnership
with local industry expert partners who retain property management;
and
- Mortgage Debt Investments: Real estate debt and equity
lending platform focused on major cities across the United States. Focused on providing all
forms of bridge mortgage loans and joint venture capital.
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 Company's intended use of the net proceeds
of the Rights Offering; and the Company's intention to complete the
previously announced New York City Joint Venture Investment.
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 Company's 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 the Company to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks, including those described in the
Company's public disclosure documents on SEDAR at
www.sedar.com.
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.
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 the Company is available at
www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Corp.