TORONTO, Feb. 20 /CNW/ - (TSXV: IS.UN) InStorage Real Estate Investment
Trust ("InStorage" or the "REIT") announced today the listing of its units on
the Toronto Stock Exchange ("TSX"), the consolidation of its outstanding units
and the implementation of a Unitholder Rights Plan.
InStorage has graduated to the TSX from the TSX Venture Exchange.
Effective as of the opening of trading today, the units of InStorage will be
listed on the TSX and will continue to trade under the symbol "IS.UN".
Immediately prior to listing on the TSX, the units of InStorage will be
consolidated on an eight-to-one (8:1) basis, as approved by the unitholders of
the REIT at the June 7, 2007 annual and special meeting of the unitholders.
The limited partnership units of InStorage Limited Partnership will be
consolidated on the same basis as and concurrently with the units of the REIT.
Holders of outstanding units of the REIT and InStorage LP will receive a
letter of transmittal for use to deliver their pre-consolidation units to
Computershare Investor Services Inc., the transfer agent of the units.
Pre-consolidation units will be exchanged for new post-consolidation units
representing the corresponding number of units resulting from the
consolidation. As approved by the unitholders, fractional units will not be
issued in connection with the consolidation and post-consolidation units will
be rounded to the nearest whole number of units.
There are currently 185,766,110 units of the REIT outstanding. On a
post-consolidated basis, there will be approximately 23,220,764 units of
"We are pleased to make the move to the TSX and complete our unit
consolidation, both of which represent important milestones for us," stated T.
James Tadeson, Chief Executive Officer. "We anticipate that the result will be
more visibility and enhanced liquidity for our investors. Achieving these
objectives were important to the continued execution of our business plan. We
remain focused on revenue growth, generating portfolio efficiencies, and
building our platform as the largest owner and operator of self-storage
facilities in Canada."
Unitholder Rights Plan
The REIT also announced today the implementation of a Unitholder Rights
Plan. The Plan is designed to ensure the fair treatment of InStorage's
unitholders in any transaction involving a change of control of the REIT and
will provide the Board of Trustees and InStorage's unitholders with adequate
time to evaluate any unsolicited take-over bid and, if appropriate, to seek
out alternatives to maximize unitholder value.
The Rights Plan is not being implemented in response to any specific
proposal to acquire control of InStorage and the REIT is not aware of any such
The Rights Plan takes effect immediately and will continue in effect
until the annual meeting of unitholders expected to be held in or about June
2008. It is the REIT's intention to seek unitholder approval to extend the
Rights Plan at the annual meeting for a three-year period thereafter.
The Rights Plan is similar to rights plans adopted by other Canadian
income trusts and corporations. Until the occurrence of certain specific
events, the rights will trade with the units of the REIT and be represented by
any certificates for such units. The rights become exercisable only when a
person, including any party related to it or acting jointly with it, acquires
or announces its intention to acquire 20 percent or more of the outstanding
units of InStorage without complying with the Permitted Bid provisions of the
Rights Plan. Should a non-permitted bid be launched, each right would entitle
each holder of voting units (other than the acquiring person and persons
related to it or acting jointly with it) to purchase additional units of the
REIT at a 50 percent discount to the market price at the time.
The Rights Plan is not intended to prevent take-over bids but rather to
ensure their proper evaluation by the market. Under the Rights Plan, a
Permitted Bid is a bid made to all unitholders for all of their units on
identical terms and conditions that is open for at least 60 days. If at the
end of 60 days at least 50 percent of the outstanding units, other than those
owned by the offeror and certain related parties, have been tendered, the
offeror may take up and pay for the units but must extend the bid for a
further 10 days to allow all other unitholders to tender.
InStorage is an unincorporated open-ended real estate investment trust
that invests primarily in self-storage properties and ancillary businesses
throughout Canada. The REIT is the largest owner/operator of self storage
facilities in Canada and is the country's leading self-storage industry
consolidator, with a current portfolio of 52 self-storage properties located
in Alberta, Saskatchewan, Ontario and Quebec.
Additional information concerning InStorage may be obtained on the REIT's
website, www.instoragereit.ca, and on the SEDAR website at www.sedar.com,
under the REIT's profile.
For further information:
For further information: please contact: T. James Tadeson, Chief
Executive Officer, Tel: (416) 867-9705; Alay Shah, Chief Financial Officer,
Tel: (416) 867-9740