Homburg Invest Inc. announces intention to apply for Normal Course Issuer Bid and stock consolidation



    
    Shares issued: Class A - 155,579,016   Class B - 31,514,782
    

    HALIFAX, Sept. 23 /CNW/ - (TSX: HII.A & HII.B and Euronext:HII (the
"Shares")) Richard Homburg, Chairman and CEO of Homburg Invest Inc. ("Homburg
Invest") is pleased to announce that the Board of Directors of Homburg Invest
have approved that two applications be made to the TSX. First, Homburg Invest
intends to apply for and launch a Normal Course Issuer Bid (the "NCIB") to
acquire up to 10% of the public float. Second, Homburg Invest also intends to
enter an application to consolidate its Shares at a ratio of 10 to 1, that is,
10 existing shares to be consolidated into 1 new share of each pre-existing
class of shares. These applications are each subject to regulatory approval
and this notice should not be construed in any way to suggest that Homburg
Invest has received any regulatory approval.
    Mr. Richard Homburg believes that these programs will benefit all
shareholders and Homburg Invest itself. The Board of Homburg Invest believes
that a NCIB is a prudent application of Homburg Invest's excess available cash
while the stock consolidation will reduce speculative buying and share price
manipulation of the Shares. In addition, Mr. Homburg believes that the shares
of Homburg Invest represent excellent value and that the Shares are trading at
a deep discount to Net Asset Value ("NAV"), far below the intrinsic value of
Homburg Invest. Mr. Homburg has stated that:

    
       "Supporting the share price of Homburg Invest will greatly strengthen
       the company and better position it to take advantage of the
       opportunities becoming available in the current market conditions."
    

    Based upon the June 30, 2008 financial statements prepared under
International Financial Reporting Standards, Homburg Invest has a NAV per
basic share of $4.74. The NAV per basic share is defined as the shareholders
equity at June 30, 2008, divided by the number of shares outstanding.
    This NAV per basic share amount excludes the value in the company's
development pipeline and land positions currently held by Homburg Invest.
Management is of the opinion that this unrecorded value approximates $1.50 per
share after all taxes.
    In May of 2008, IAS 40-Investment Property was amended to include
property that is being constructed or developed for future use as investment
property. Previously, these projects were accounted for under IAS 16-Property,
Plant and Equipment, at cost until completion. This amendment will allow the
Development Properties to be carried at fair market value, with adjustment
through the Statement of Earnings. This change is to be applied prospectively
for annual periods beginning on or after January 1, 2009. The amendments can
be applied earlier to investment property under construction provided that the
fair values of investment properties under construction are determined at the
earlier dates. Homburg Invest is currently determining the fair value of
investment properties under construction and will early apply the amendments
to the extent that fair value can be reliably determined.

    Homburg Invest, with its head office in Halifax, Nova Scotia, owns and
develops a diversified portfolio of quality real estate including office,
retail, industrial and residential apartment and townhouse properties
throughout Canada, the United States and Europe.

    This news release may contain statements which by their nature are
forward looking and express the Company's beliefs, expectations or intentions
regarding future performance, future events or trends. Forward looking
statements are made by the Company in good faith, given management's
expectations or intentions however, they are subject to market conditions,
acquisitions, occupancy rates, capital requirements, sources of funds, expense
levels, operating performance and other matters. Therefore, forward looking
statements contain assumptions which are subject to various factors including:
unknown risks and uncertainties: general economic conditions; local market
factors; performance of other third parties; environmental concerns; and
interest rates, any of which may cause actual results to differ from the
Company's good faith beliefs, expectations or intentions which have been
expressed in or may be implied from this news release. Therefore, forward
looking statements are not guarantees of future performance and are subject to
known and unknown risks. Information and statements in this document, other
than historical information, should be considered forward-looking and reflect
management's current views of future events and financial performance that
involve a number of risks and uncertainties. Factors that could cause actual
results to differ materially include, but are not limited to, the following:
general economic conditions and developments within the real estate industry,
competition and the management of growth. The Toronto Stock Exchange has
neither approved nor disapproved of the information contained herein.
    %SEDAR: 00013330E




For further information:

For further information: Mr. Richard Homburg, Chairman and CEO, Homburg
Invest Inc., (902) 468-3395; J. Richard Stolle, President and COO, Homburg
Invest Inc., 31-20-573-3855

Organization Profile

Homburg Invest Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890