TORONTO, March 8, 2013 /CNW/ - Edgefront Realty Corp. ("Edgefront") is pleased to announce that it has closed its qualifying transaction
(the "Qualifying Transaction") which involved the acquisition, pursuant to a purchase and sale
agreement dated January 21, 2013 (the "Purchase Agreement"), of the rights of 1732228 Ontario Inc. as tenant in a 66 year ground
lease (the "Ground Lease") (which commenced on May 1, 2006 with the option to extend for two
additional 10 year terms) in respect of a property in Charlottetown,
Prince Edward Island containing a 4,500 square foot building (the "Property") for a total purchase price of $1.148 million. The purchase price was
satisfied by the assumption by Edgefront of the existing mortgage on
the Property, with a principal balance of approximately $0.5 million,
with the remainder of the purchase price paid in cash.
On February 26, 2013, the TSX Venture Exchange (the "TSXV") issued its conditional acceptance of the Qualifying Transaction.
Upon issuance of the final exchange bulletin of the TSXV, Edgefront
will cease to be a Capital Pool Company ("CPC", as defined in the policies of the TSXV) and Edgefront will recommence
trading as a Tier 2 Real Estate Issuer on the TSXV at market opening on
March 12, 2013. As Edgefront will no longer be a CPC, the trading
symbol of Edgefront will be changed from "ED.P" to "ED".
Edgefront Realty Corp.
Edgefront Realty Corp. is currently a CPC listed on the TSXV. Following
closing of the Qualifying Transaction, the Board of Directors of
Edgefront will continue to be comprised of Kelly C. Hanczyk, Mario
Forgione, Ted Manziaris and Peter M. Vukanovich. The principal business
of Edgefront will initially be to manage and operate the Property for
the term of the Ground Lease. It is also the intention of Edgefront to
expand its business of purchasing, owing and operating real estate
assets and to raise funds in the marketplace in order to convert
Edgefront into a real estate investment trust having an external asset
management structure, subject to receipt of all necessary approvals,
including that of the TSXV. A copy of Edgefront's filing statement and
the Purchase Agreement can be found on www.sedar.com.
The TSXV has neither approved nor disapproved the contents of this press
release. Neither TSXV nor its Regulation Services Provider (as that
term is defined in 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. Although Edgefront believes that
such information is reasonable, it can give no assurance that such
expectations will prove to be correct. In particular, this news release
contains forward-looking information relating to the issuance of the
final exchange bulletin in respect of the Qualifying Transaction, the
trading of the Edgefront shares, and the business strategies of
Edgefront. The final exchange bulletin will not be issued if the TSXV
determines that Edgefront has not met the conditions set out in the
TSXVs conditional approval letter.
Forward looking information is typically identified by words such as:
believe, expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future
events. Edgefront cautions investors that any forward-looking
information provided by Edgefront is not a guarantee of future results
or performance, and that actual results may differ materially from
those in forward looking information as a result of various factors,
including, but not limited to: the state of the financial markets for
Edgefront's securities; the state of the real estate sector; recent
market volatility; Edgefront's ability to raise the necessary capital
or to be fully able to implement its business strategies; and other
risks and factors that Edgefront is unaware of at this time. The
reader is referred to Edgefront's Filing Statement and initial public
offering Prospectus for a more complete discussion of applicable risk
factors and their potential effects, copies of which may be accessed
through Edgefront's page on SEDAR at www.sedar.com.
SOURCE: Edgefront Realty Corp.
For further information:
please contact: Kelly C. Hanczyk at (416) 906-2379.