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
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
SOURCE: Edgefront Realty Corp.
For further information:
Kelly C. Hanczyk at (416) 906-2379