TORONTO, Jan. 27, 2012 /CNW/ - On January 27, 2012, Geosam Capital Inc. ("Geosam") acquired 104,560,000 trust units of Holloway Lodging Real Estate Investment Trust ("Holloway") at a price of $0.065 per trust unit, representing 13.9% of the outstanding trust units of Holloway. Immediately after the transaction, Geosam owns 160,598,167 trust units and 1,050,000 warrants. On an as converted basis, such securities represent an aggregate of 21.4% of the trust units.
Geosam purchased the securities through the facilities of the Toronto Stock Exchange for investment purposes. Geosam may acquire additional securities of Holloway, dispose of some or all of the existing or additional securities of Holloway, or continue to hold securities of Holloway in the normal course of Geosam's investment activities.
In purchasing the 104,560,000 trust units referred to in (a) above, Geosam relied on the private agreement exemption from the formal take-over bid rules set out in Section 100.1(1) of the Securities Act (Ontario). Geosam was entitled to rely on this exemption because (i) the purchase of the 104,560,000 trust units was not made from more than five persons, (ii) the offer to purchase was not made generally to all holders of Holloway's trust units, and (iii) the value of the consideration paid for the 104,560,000 trust units, including brokerage fees or commissions, was not greater than 115% of the market price of Holloway's trust units on the Toronto Stock Exchange on January 27, 2012 as determined in accordance with Section 1.3 of Ontario Securities Commission Rule 62-504 - Takeover Bids and Issuer Bids.
For further information:
TD Canada Trust Tower
161 Bay Street, Suite 2400
P.O. Box 217, Toronto, ON, M5J 2S1
t: (416) 855-1925
f: (416) 640-1834