/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
TORONTO, May 31, 2021 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust"), (TSXV: FCD.UN) is pleased to
announce that it has entered into an agreement with a syndicate of
underwriters led by Canaccord Genuity, CIBC Capital Markets, and TD
Securities, as joint bookrunners, to issue to the public 3,572,000
trust units (the "Trust Units") of FCPT at a price of
$7.00 per Trust Unit (the "Issue
Price") for gross proceeds of approximately $25.0 million (the "Offering"). The Trust
has also granted the underwriters an over-allotment option to
purchase up to an additional 535,800 Trust Units at the Issue
Price exercisable, in whole or in part, at any time and from time
to time until 30 days following the closing of the Offering, to
cover over-allotments (if any). If the over-allotment option is
exercised in full, the gross proceeds of the Offering will be
approximately $28.8 million.
The Trust Units will be issued pursuant to a prospectus
supplement that will be filed with the securities regulatory
authorities in all provinces of Canada under the Trust's base shelf prospectus
dated December 3, 2019 and may also
be offered by way of private placement into the United States pursuant to Rule 144A under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"). The net proceeds of the Offering will be used
to repay indebtedness and for working capital and general trust
purposes.
Since the beginning of 2020, the Trust has completed
$44.2 million in acquisitions
(exclusive of closing costs), comprised of joint venture interests
in 2 industrial buildings totaling 90,384 square feet, 260
multi-residential apartment units and 181 manufactured housing
pads.
The Offering is scheduled to close on or about June 8, 2021, and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the TSX Venture
Exchange.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The securities
being offered have not been, and will not be, registered under the
U.S. Securities Act, or any state securities laws, and may not be
offered or sold in the United
States unless an exemption from registration is
available.
DISTRIBUTION REINVESTMENT PLAN & UNIT PURCHASE
PLAN
The Trust has in place a Distribution Reinvestment Plan ("DRIP")
and Unit Purchase Plan (the "UPP"). Under the terms of the DRIP,
FCPT's Unitholders may elect to automatically reinvest all or a
portion of their regular monthly distributions in additional Trust
Units, without incurring brokerage fees or commissions. Under the
terms of the UPP, FCPT's Unitholders may purchase a minimum of
$1,000 of Trust Units per month and
maximum purchases of up to $12,000
per annum. Management and trustees have not participated in the
DRIP or UPP to date and own approximately 7% of the issued and
outstanding trust units of the Trust.
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term
value for Unitholders, through capital preservation and disciplined
investing to achieve stable distributable income. In partnership
with management and industry leaders, The Trust's plan is to own as
well as to co-own a diversified portfolio of multi-residential,
flex industrial, net lease convenience retail, and core service
provider professional space. In addition to stand alone accretive
acquisitions, the Trust will make joint acquisitions with strong
financial partners and acquisitions of partial interests from
existing ownership groups, in a manner that provides liquidity to
those selling owners and professional management for those
remaining as partners. Firm Capital Realty Partners Inc.,
through a structure focused on an alignment of interests with the
Trust sources, syndicates and property and asset manages
investments on behalf of the Trust.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", and by discussions of strategies that involve risks and
uncertainties. The forward-looking statements are based on certain
key expectations and assumptions made by the Trust. By their
nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts,
projections and various future events will not occur. These risks
include, but are not limited to, risks associated with the ability
to satisfy regulatory, stock exchange and commercial closing
conditions of the Offering, the uncertainty associated with
accessing capital markets and the risks related to FCPT's business,
including those identified in FCPT's annual information form for
the year ended December 31, 2020
under the heading "Risks and Uncertainties" (a copy of which may be
obtained at www.sedar.com). Although management of the Trust
believes that the expectations reflected in the forward-looking
statements are reasonable, there can be no assurance that future
results, levels of activity, performance or achievements will occur
as anticipated. Neither the Trust nor any other person assumes
responsibility for the accuracy and completeness of any
forward-looking statements, and no one has any obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events or such other factors which affect this
information, except as required by law.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, which may be made only by means of
a prospectus, nor shall there be any sale of the Trust Units in any
state, province or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under securities laws of any such state, province or
other jurisdiction. The Trust Units have not been, and will not be
registered under the U.S. Securities Act, and may not be offered,
sold or delivered in the United
States absent registration or an application for exemption
from the registration requirements of U.S. securities laws.
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. Additional information about the Trust is
available at www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital Property Trust