Firm Capital American Realty Partners Corp. announces successful completion of US$10.0 million rights offering

TORONTO, Dec. 15, 2016 /CNW/ - Firm Capital American Realty Partners Corp. (the "Company"), (TSXV : FCA.U) is pleased to announce that it has closed its previously announced rights offering (the "Rights Offering") issuing an aggregate of 62,933,860 common shares at a subscription price of US$0.16 per common share for gross proceeds of approximately US$10.0 million.

Holders of rights subscribed for an aggregate of 42,748,017 common shares pursuant to the exercise of the basic subscription privilege under the terms of the Rights Offering of which 24,027,597 were subscribed for by certain insiders of the Company as a group and 18,720,420 were subscribed for by all other rights holders as a group.

An additional 7,361,993 common shares were issued pursuant to the exercise of the additional subscription privilege under the terms of the Rights Offering. No such shares were issued to insiders of the Company.

An aggregate of 12,823,850 common shares were issued by the Company to the stand-by purchasers pursuant to the terms of their stand-by commitment agreement with the Company.

As of the closing date of the Rights Offering, the Company has a total of 125,867,720 common shares issued and outstanding. The Company did not pay any finders fees or commissions in connection with the distribution of securities under the Rights Offering.

The Company intends to immediately use a portion of the net proceeds of the Rights Offering to close the previously announced New York City Joint Venture Investment on or about December 17, 2016 and use the remaining net proceeds for future acquisitions and general corporate purposes. In addition, the Company is working towards completing the previously announced share consolidation that was approved at the Company's Annual and Special Meeting of Shareholders.

ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm Capital American Realty Partners Corp. focuses on capital partnership investing in U.S. income producing real estate & mortgage debt investments.

The Company is focused on the following investment platforms:

  • Income Producing Real Estate Investments: Acquiring income producing U.S. real estate assets in major cities across the United States. Acquisitions are completed solely by the Company or in joint-venture partnership with local industry expert partners who retain property management; and
  • Mortgage Debt Investments: Real estate debt and equity lending platform focused on major cities across the United States. Focused on providing all forms of bridge mortgage loans and joint venture capital.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements regarding the Company's intended use of the net proceeds of the Rights Offering; and the Company's intention to complete the previously announced New York City Joint Venture Investment.

Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Company holds properties; volatility of real estate prices; inability to complete the Company's single family property disposition program or debt restructuring in a timely manner; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks, including those described in the Company's public disclosure documents on SEDAR at www.sedar.com.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward- looking statements contained in this news release are expressly qualified by this cautionary statement.

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

Additional information about the Company is available at www.firmcapital.com or www.sedar.com.

SOURCE Firm Capital American Realty Partners Corp.

For further information: Sandy Poklar, President & Chief Executive Officer, (416) 635-0221; Stuart Pasternak, Chief Financial Officer, (416) 635-0221


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