/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED
STATES/
TSXV Symbol: FCA.U
TORONTO, May 23, 2017 /CNW/ - Firm Capital American Realty
Partners Corp. (the "Corporation") (TSXV: FCA.U) is pleased
to announce the filing of a final prospectus for the public
offering (the "Offering") of units (the "Offered
Units") of the Corporation, as previously announced in the
Corporation's press release dated May 10,
2017.
The Corporation has filed a final prospectus in each of the
Provinces of Canada, other than
Quebec, in connection with the
Offering at a price of U.S.$7.50 per
Offered Unit (C$10.24 per Offered
Unit based on the Bank of Canada
daily noon rate of exchange of 1.36535 as of May 10, 2017). Each Offered Unit consists of one
common share of the Corporation and one common share purchase
warrant of the Corporation (an "Offered Warrant"). Each
Offered Warrant will entitle the holder to purchase one common
share of the Corporation at an exercise price of U.S.$8.50 for a period of 36 months from the closing
date of the Offering. Canaccord Genuity Corp. is acting as the
underwriter of the Offering. The Corporation expects to raise gross
proceeds of approximately U.S.$6.3
million pursuant to the Offering.
In connection with the Offering, investors had the option of
subscribing for the Offering in U.S. dollars or Canadian dollars.
The TSX Venture Exchange (the "TSXV") has conditionally
approved the listing of the common shares to be issued under the
Offering for trading in Canadian dollars under the symbol "FCA",
alongside the Corporation's existing common shares that trade in
U.S. dollars under the symbol "FCA.U". The TSXV has also
conditionally approved the listing of the Offered Warrants for
trading in U.S. dollars under the symbol "FCA.U.WT". The
completion of the Offering remains subject to the final approval of
the TSXV.
The net proceeds of the Offering will be used by the Corporation
to fund prospective investments in income producing real estate
properties in the U.S. primarily in joint-venture partnerships, to
fund prospective investments in bridge mortgage debt on U.S. real
estate properties, for the repayment of debt, for working capital,
and for general corporate purposes.
The Corporation intends to adopt a dividend policy, which is
anticipated to be effective 90 days after the closing of the
Offering, pursuant to which it will pay U.S. dollar cash dividends
(on both the U.S. dollar and Canadian dollar common shares) to
shareholders of the Corporation as of each quarterly dividend
record date, targeted to be the last day of each calendar quarter.
The common shares of the Corporation are expected to provide an
initial cash-on-cash yield of 3.0%. These intentions with respect
to the anticipated dividend policy are subject to the risks,
factors and assumptions set forth in the final prospectus for the
Offering under the heading "Dividend Policy".
About the Corporation
Currently, the Corporation is focused on the following
investment platforms:
- Income Producing Real Estate Investments:
Acquiring income producing real estate assets in major cities
across the United States.
Acquisitions are completed by the Corporation primarily in joint
venture partnerships with local industry expert partners who retain
property management responsibility; and
- Mortgage Debt Investments: Real estate debt and
equity lending platform in major cities across the United States, focusing 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 necessarily
involve known and unknown risks, including those described in the
Corporation's Annual Information Form under "Risk Factors"
(a copy of which can be obtained at www.sedar.com). Those risks
include, without limitation, the ability of the Corporation to
complete the Offering and if so, to allocate the net proceeds as
stated above; risks associated with general economic conditions;
adverse factors affecting the U.S. real estate market generally or
those specific markets in which the Corporation holds properties;
volatility of real estate prices; inability to complete the
Corporation'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 Corporation 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.
All forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. Except as
required by applicable law, the Corporation undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. 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.
SOURCE Firm Capital American Realty Partners Corp.