Taiga completes $20 million sale and leaseback transaction
BURNABY, BC, Feb. 28, 2014 /CNW/ - Taiga Building Products Ltd. (TSX: TBL & TBL.NT), ("Taiga" or the "Company") is pleased to announce that it has completed the sale of five of its Canadian distribution facilities to an affiliate of Korite Capital Corporation for an aggregate purchase price of $20,000,000. Taiga has leased each of the facilities back from the purchaser for an initial period of 20 years and has the option to renew each lease twice for a further five years under each renewal.
Net proceeds of this transaction are expected to be used for strategic, working capital, and/or general corporate purposes.
This news release contains forward-looking information that reflects the current views and/or expectations of Taiga with respect to its performance, business and future events, including statements relating to expected use of proceeds derived from the sale and leaseback transaction. Forward-looking information is based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. Forward-looking information does not guarantee future performance and involves risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking information involves risks and uncertainties including, without limitation, that the Company will be required to alter its expected use of proceeds depending on business and market conditions at the time of closing, and other risk factors listed from time to time in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. Taiga does not undertake any obligation to release publicly any revisions to or updating any voluntary forward-looking statements, except as required by applicable securities law.
SOURCE Taiga Building Products Ltd.For further information:
regarding Taiga, please contact:
CFO and VP, Finance & Administration