Capital BLF Inc. announces closing of $23.5 million private placement equity offering and property acquisitions

MONTREAL, March 18, 2013 /CNW Telbec/ - Capital BLF Inc. (the "Corporation"), a company listed on the TSX Venture Exchange (the "TSX-V", (symbol: BLF)), announced that it has closed on Friday, March 15, 2013, the previously announced private placement (the "Private Placement") of 102,174,000 common shares at a price of $0.23 per common share for gross proceeds of $23.5 million. The net proceeds of the Private Placement were used today to purchase the three previously announced acquisition properties in Québec City and Montréal. The securities issued under the Private Placement are subject to a four-month hold period ending on July 16, 2013. The Private Placement was brokered by Scotiabank and National Bank Financial Inc., acting as co-lead agents.

"We are very pleased to have closed our first acquisitions and equity financing in a timely manner since my arrival in December 2012" commented Mathieu Duguay, President and CEO. "We believe that our entrepreneurial culture and local presence in the Province of Québec will provide us with access to many opportunities to acquire similarly attractive properties that will enhance the value of our company."

As part of the Private Placement, Mr. Duguay subscribed to 20,434,800 shares, Mr. Claude Blanchet, Chairman of the Board of the Corporation, subscribed to 2,173,900 shares and Mr. Marc Marois, Vice-President Investment and Asset Management and member of the Board of the Corporation, subscribed to 355,000 shares. Following closing of the Private Placement, Mr. Duguay, Mr. Blanchet and Mr. Marois hold an ownership interest in the Corporation representing approximately 19.99%, 3.27% and 1.06%, respectively.

Concurrent with the closing of the Private Placement, the conditional asset management agreement with First Investor, L.P. and conditional property management agreement with Société de gestion Cogir s.e.n.c. described in the March 4, 2013 press release came into effect.

In addition, the Corporation announced that it has entered into a commitment for a revolving acquisition facility (the "Acquisition Facility") with First National Financial LP in the amount of $10 million for a term of two years. The Acquisition Facility will be secured by first or second charges on the Corporation's properties, and will be used to strategically finance future acquisitions. The Acquisition Facility provides the Corporation with financial flexibility to execute on its strategy of consolidating the multi-family residential sector in the Province of Québec.

The Corporation also announced today that it has declared its first monthly cash dividend, in the amount of $0.0008 per share, to be paid on May 15, 2013, to shareholders of record on April 30, 2013.

The Corporation also announced today that it has granted to certain members of management and its directors a total of 6,601,800 stock options for common shares pursuant to its stock option plan. The stock options have a term of 5 years, an exercise price of $0.28 per share and will vest after a period of 2 years.

About Capital BLF Inc.

The principal business of the Corporation is acquiring, holding, developing, maintaining, improving, leasing, managing or otherwise dealing with income-producing multi-unit residential properties located throughout Canada, primarily in the province of Québec. The Corporation currently owns seven properties located in Montréal, Dorval and Québec City totaling 694 apartment units.

Forward-Looking Information

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involved known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the Corporation. Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or circumstances, except as required by law.

The TSX-V has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: CAPITAL BLF INC.

For further information:

Mr. Mathieu Duguay
President and Chief Executive Officer
450 766-2400

Organization Profile

CAPITAL BLF INC.

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