MONTREAL, March 18, 2013 /CNW Telbec/ - Capital BLF Inc. (the "Corporation"), a company listed on the TSX Venture Exchange (the "TSX-V", (symbol: BLF)), announced that it has closed on Friday, March 15,
2013, the previously announced private placement (the "Private Placement") of 102,174,000 common shares at a price of $0.23 per common share for
gross proceeds of $23.5 million. The net proceeds of the Private Placement were used today to
purchase the three previously announced acquisition properties in
Québec City and Montréal. The securities issued under the Private
Placement are subject to a four-month hold period ending on July 16,
2013. The Private Placement was brokered by Scotiabank and National
Bank Financial Inc., acting as co-lead agents.
"We are very pleased to have closed our first acquisitions and equity
financing in a timely manner since my arrival in December 2012"
commented Mathieu Duguay, President and CEO. "We believe that our
entrepreneurial culture and local presence in the Province of Québec
will provide us with access to many opportunities to acquire similarly
attractive properties that will enhance the value of our company."
As part of the Private Placement, Mr. Duguay subscribed to 20,434,800
shares, Mr. Claude Blanchet, Chairman of the Board of the Corporation,
subscribed to 2,173,900 shares and Mr. Marc Marois, Vice-President Investment and Asset
Management and member of the Board of the Corporation, subscribed to
355,000 shares. Following closing of the Private Placement, Mr. Duguay,
Mr. Blanchet and Mr. Marois hold an ownership interest in the
Corporation representing approximately 19.99%, 3.27% and 1.06%, respectively.
Concurrent with the closing of the Private Placement, the conditional
asset management agreement with First Investor, L.P. and conditional
property management agreement with Société de gestion Cogir s.e.n.c.
described in the March 4, 2013 press release came into effect.
In addition, the Corporation announced that it has entered into a
commitment for a revolving acquisition facility (the "Acquisition Facility") with First National Financial LP in the amount of $10 million for a
term of two years. The Acquisition Facility will be secured by first or
second charges on the Corporation's properties, and will be used to
strategically finance future acquisitions. The Acquisition Facility
provides the Corporation with financial flexibility to execute on its
strategy of consolidating the multi-family residential sector in the
Province of Québec.
The Corporation also announced today that it has declared its first
monthly cash dividend, in the amount of $0.0008 per share, to be paid
on May 15, 2013, to shareholders of record on April 30, 2013.
The Corporation also announced today that it has granted to certain
members of management and its directors a total of 6,601,800 stock
options for common shares pursuant to its stock option plan. The stock
options have a term of 5 years, an exercise price of $0.28 per share
and will vest after a period of 2 years.
About Capital BLF Inc.
The principal business of the Corporation is acquiring, holding,
developing, maintaining, improving, leasing, managing or otherwise
dealing with income-producing multi-unit residential properties located
throughout Canada, primarily in the province of Québec. The Corporation
currently owns seven properties located in Montréal, Dorval and Québec
City totaling 694 apartment units.
This press release contains forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects" or "does not expect", "is expected",
"estimates", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements
involved known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements expressed or
implied by the forward-looking statements. Accordingly, readers should
not place undue reliance on forward-looking statements. The factors
identified above are not intended to represent a complete list of the
factors that could affect the Corporation. Management disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
circumstances, except as required by law.
The TSX-V has in no way passed upon the merits of the proposed
transactions and has neither approved nor disapproved the contents of
this press release.
Neither the TSX-V nor its Regulation Services Provider (as that term is
defined in policies of the TSX-V) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE: CAPITAL BLF INC.
For further information:
Mr. Mathieu Duguay
President and Chief Executive Officer