TORONTO, March 8, 2013 /CNW/ - Edgefront Realty Corp. ("Edgefront") is pleased to announce that it has closed its qualifying transaction (the "Qualifying Transaction") which involved the acquisition, pursuant to a purchase and sale agreement dated January 21, 2013 (the "Purchase Agreement"), of the rights of 1732228 Ontario Inc. as tenant in a 66 year ground lease (the "Ground Lease") (which commenced on May 1, 2006 with the option to extend for two additional 10 year terms) in respect of a property in Charlottetown, Prince Edward Island containing a 4,500 square foot building (the "Property") for a total purchase price of $1.148 million. The purchase price was satisfied by the assumption by Edgefront of the existing mortgage on the Property, with a principal balance of approximately $0.5 million, with the remainder of the purchase price paid in cash.
On February 26, 2013, the TSX Venture Exchange (the "TSXV") issued its conditional acceptance of the Qualifying Transaction. Upon issuance of the final exchange bulletin of the TSXV, Edgefront will cease to be a Capital Pool Company ("CPC", as defined in the policies of the TSXV) and Edgefront will recommence trading as a Tier 2 Real Estate Issuer on the TSXV at market opening on March 12, 2013. As Edgefront will no longer be a CPC, the trading symbol of Edgefront will be changed from "ED.P" to "ED".
Edgefront Realty Corp.
Edgefront Realty Corp. is currently a CPC listed on the TSXV. Following closing of the Qualifying Transaction, the Board of Directors of Edgefront will continue to be comprised of Kelly C. Hanczyk, Mario Forgione, Ted Manziaris and Peter M. Vukanovich. The principal business of Edgefront will initially be to manage and operate the Property for the term of the Ground Lease. It is also the intention of Edgefront to expand its business of purchasing, owing and operating real estate assets and to raise funds in the marketplace in order to convert Edgefront into a real estate investment trust having an external asset management structure, subject to receipt of all necessary approvals, including that of the TSXV. A copy of Edgefront's filing statement and the Purchase Agreement can be found on www.sedar.com.
The TSXV has neither approved nor disapproved the contents of this press release. Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information within the meaning of Canadian securities laws. Although Edgefront believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. In particular, this news release contains forward-looking information relating to the issuance of the final exchange bulletin in respect of the Qualifying Transaction, the trading of the Edgefront shares, and the business strategies of Edgefront. The final exchange bulletin will not be issued if the TSXV determines that Edgefront has not met the conditions set out in the TSXVs conditional approval letter.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Edgefront cautions investors that any forward-looking information provided by Edgefront is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for Edgefront's securities; the state of the real estate sector; recent market volatility; Edgefront's ability to raise the necessary capital or to be fully able to implement its business strategies; and other risks and factors that Edgefront is unaware of at this time. The reader is referred to Edgefront's Filing Statement and initial public offering Prospectus for a more complete discussion of applicable risk factors and their potential effects, copies of which may be accessed through Edgefront's page on SEDAR at www.sedar.com.
SOURCE: Edgefront Realty Corp.
For further information:
please contact: Kelly C. Hanczyk at (416) 906-2379.