Edgefront Realty Corp. provides further update on purchase of 10 industrial properties from RTL-Westcan Limited Partnership and annual and special shareholder meeting
TORONTO, Dec. 30, 2013 /CNW/ - Edgefront Realty Corp. ("Edgefront" or the "Company") (TSXV: ED) is pleased to provide an update on its agreement, previously announced on November 1, 2013, to purchase a portfolio of 10 industrial properties located in Alberta, Saskatchewan, British Columbia and the Northwest Territories which will be a Reverse Takeover (as that term is defined in TSXV Policy 5.2) (the "Transaction").
On December 5, 2013, Edgefront mailed its management information circular (the "Circular") in connection with the annual and special meeting of shareholders to be held on January 6, 2014 (the "Meeting") regarding the Transaction. Edgefront has also received comments from the ("TSXV") on documentation submitted in furtherance of its application for conditional approval. Edgefront expects closing of the Transaction will occur on or about January 10, 2013.
Edgefront is a growth oriented real estate company focused on increasing shareholder value through the acquisition, ownership and management of industrial properties located in primary and secondary markets in North America, with an initial focus on Western Canada. It is the intention of Edgefront to expand its business of purchasing, owning and operating real estate assets and to convert into a real estate investment trust having an external asset management structure, subject to receipt of all necessary approvals, including that of the TSXV.
Cautions Regarding Future Plans and Forward Looking Information
Completion of the proposed transaction is subject to a number of conditions, including TSXV acceptance and shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the transaction, any information released or received with respect to the proposed transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Edgefront should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the completion of the proposed transaction and the business strategies of Edgefront. Although Edgefront believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Annual and Special Meeting
In accordance with TSXV requirements, Edgefront hereby provides notice to shareholders that it will be amending the Management Agreement Resolution to be approved by shareholders regarding the management agreement to be entered into by Edgefront Real Estate Investment Trust (the "REIT") with Edgefront Realty Advisors Limited Partnership (the "Manager") upon completion of the Transaction as set out in Schedule A-4 to the Circular. The management agreement allows for compensation to be paid by the REIT to the Manager in REIT units. The Management Agreement Resolution currently provides a limit of up to 3,000,000 REIT units to be provided as compensation under the management agreement. This limit will be lowered to 1,975,000 REIT units.
On or shortly following Closing, the REIT intends to adopt a distribution reinvestment plan pursuant to which certain resident Canadian unitholders will be entitled to elect to have all or some of their cash distributions of the REIT automatically reinvested in additional REIT units. The aggregate number of units which may be issued by the REIT under this plan will be limited to 1,975,000 REIT units.
SOURCE Edgefront Realty Corp.For further information:
Kelly C. Hanczyk at (416) 906-2379