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MONTREAL, July 15, 2021 /CNW/ - (TSXV: NET.UN) Canadian Net
Real Estate Investment Trust ("Canadian Net" or the
"Trust") is pleased to announce today that (i) it has waived
conditions on the acquisition of a single tenant grocery store
property in Quebec City, Québec,
for a purchase price of approximately $6.2
million, and (ii) a bought deal public offering of trust
units (the "Units") for gross proceeds to the Trust of
approximately $17.5 million.
PROPERTY ACQUISITION
The Trust announced today that it
has waived conditions on the acquisition of a grocery store
property operated under the IGA banner in Quebec City, Québec. The property is
strategically located on Wilfrid-Hamel Blvd., a highly trafficked
artery in Quebec City. Total
consideration to be paid for the property is $6.2 million (excluding transaction costs) and
will be paid in cash. The transaction is expected to close at the
end of July.
BOUGHT DEAL PUBLIC OFFERING OF UNITS
The Trust also
announced today that it has entered into an agreement with a
syndicate of underwriters co-led by Canaccord Genuity Corp. and
Paradigm Capital Inc. (collectively, the "Underwriters") to
issue and sell, on a bought deal basis, 2,350,000 Units at a price
of $7.45 per Unit (the "Offering
Price") for gross proceeds to the Trust of approximately
$17.5 million (the
"Offering").
The Underwriters have also been granted an option (the
"Over-Allotment Option"), exercisable in whole or in part,
at any time until 30 days after the closing of the Offering, to
purchase from the Trust up to 352,000 additional Units,
representing 15% of the Units to be issued and sold pursuant to the
Offering, at the Offering Price for additional gross proceeds to
the Trust of up to approximately $2.6
million. If the Over-Allotment Option is exercised by the
Underwriters in full, the aggregate gross proceeds of the Offering
(including the Over-Allotment Option) will be approximately
$20.1 million.
The Offering is expected to close on or about August 3, 2021 and is subject to certain
conditions, including, but not limited to, the receipt of all
necessary regulatory approvals, including the approval of the TSX
Venture Exchange (the "TSX-V").
The Trust intends to use the net proceeds from the Offering to
fund announced and future acquisitions, planned development
projects, to repay certain indebtedness which may be subsequently
redrawn, and for general business and working capital purposes.
Certain trustees of the Trust have indicated an interest in
purchasing Units as part of the Offering.
The Units will be offered by way of a short form prospectus to
be filed with the securities commissions and other similar
regulatory authorities in each of the provinces of Canada, pursuant to National Instrument 44-101
– Short Form Prospectus Distributions.
The 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, except pursuant to an
exemption from the registration requirements of the 1933 Act. This
press release does not constitute an offer to sell or a
solicitation of an offer to buy any Units in the United States.
About Canadian Net – Canadian Net Real Estate
Investment Trust is an open-ended trust that acquires and owns high
quality triple net and management-free commercial real estate
properties.
Forward-Looking Statements - This press release
contains forward-looking information as defined by applicable
securities laws. Canadian Net warns the reader that actual events
may differ materially from current expectations due to known and
unknown risks, uncertainties and other factors that could cause
actual results to differ materially from the results anticipated in
such statements. Among these include the risks that the Offering
may not be completed, the risk that Canadian Net may not be able to
obtain all necessary regulatory and stock exchange approvals,
including the approval of the TSX-V, the risks related to economic
conditions, the risks associated with the local real estate market,
the dependence to the financial condition of tenants, the
uncertainties related to real estate activities, the changes in
interest rates, the availability of financing in the form of debt
or equity, the effects related to the adoption of new standards, as
well as other risks and factors described from time to time in the
documents filed by Canadian Net with securities regulators,
including the management report. Canadian Net does not intend or
undertake to update or modify its forward-looking statements even
if future events occur or for any other reason, unless required by
law or any regulatory authority.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Canadian Net Real Estate Investment Trust