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TORONTO, Oct. 28, 2016 /CNW/ - Mainstreet Health Investments Inc. (TSX:HLP.U) (the "Company") is pleased to announce that it has satisfied the condition (the "Escrow Release Condition") to the release of the net proceeds of the offering of subscription receipts ("Subscription Receipts") completed on October 6, 2016, which will be used to finance a portion of the previously announced acquisitions of interests in seven seniors housing and care properties and investments in five mezzanine loans (collectively, the "Transactions"). In particular, the Company has confirmed that it has satisfied the conditions to the closing of the Transactions (other than the payment of the applicable purchase price and such conditions precedent that by their nature are to be satisfied at the closing of the Transactions), the value of which represent in the aggregate not less than 80% of the aggregate value of all of the Transactions.
As a result of the satisfaction of the Escrow Release Condition, each outstanding Subscription Receipt will be automatically exchanged for one common share ("Common Share") of the Company, resulting in the issuance of 7,406,000 Common Shares in the aggregate to the holders of Subscription Receipts. The Company expects that trading in the Subscription Receipts will be halted on the Toronto Stock Exchange and that the Subscription Receipts will be delisted from the Toronto Stock Exchange on or around Monday, October 31, 2016. The Company also expects that the Common Shares to be issued in exchange for the Subscription Receipts will be listed on the Toronto Stock Exchange on or around Monday, October 31, 2016.
Shareholder approval for certain of those Transactions which constitute "related party transactions" was obtained on October 26, 2016 and it is currently anticipated that the Transactions will be completed on or around November 1, 2016.
About Mainstreet Health Investments Inc.
Mainstreet Health Investments Inc. is a North American health care real estate company with a growing portfolio of high quality properties located in the United States. Our properties are operated by best-in-class health care providers under long-term, triple net leases. Our mission is to create long-term shareholder value while providing an investment opportunity that matters. For more information, visit www.mainstreethealthinvestments.com.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates, including with respect to the completion of the Transactions. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. The forward-looking statements in this news release are based on certain assumptions, are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the Company's most recent annual information form and final short-form prospectus dated September 29, 2016, each of which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Mainstreet Health Investments Inc.
For further information: please contact: Investors: Mr. Randy Henry, Director - Investor Relations, 1-317-582-6971, firstname.lastname@example.org; Media: Ms. Ashley Mattox, Communications Manager, 1-317-582-6986, email@example.com