Not for distribution on U.S. wire services or for dissemination in the United States
HALIFAX, March 27, 2012 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN) ("Holloway" or the "REIT") announces that the Board of Trustees has approved a consolidation of Holloway's trust units and special voting units (together, the "Units") on the basis of one post-consolidation Unit for each 40 pre-consolidation Units (the "Consolidation") in accordance with the terms of Holloway's Declaration of Trust.
The record date for the Consolidation has been set for March 28, 2012 (the "Record Date"). At the close of business on the Record Date, the number of Units held by each holder will be divided by a factor of 40. For unitholders that hold Units in book-entry form, the number of Units held will be automatically adjusted to reflect the Consolidation. For unitholders that hold Units in certificated form, the certificates will need to be delivered to Holloway's transfer agent for replacement and Holloway will send a letter of transmittal to such unitholders for use in the delivery process. It is expected that the Units will commence trading on the Toronto Stock Exchange on a consolidated basis at the opening of business on April 2, 2012.
The Consolidation will result in the adjustment of the number of securities outstanding and/or the exercise prices of Holloway's outstanding options and warrants, all of which are currently out-of-the-money.
Holloway currently has 753,616,405 Units outstanding. Subsequent to the Consolidation, Holloway will have 18,840,410 Units outstanding.
ABOUT HOLLOWAY LODGING REAL ESTATE INVESTMENT TRUST
Holloway is a real estate investment trust focused on acquiring, owning and operating select and limited service lodging properties and a small complement of full service hotels primarily in secondary, tertiary and suburban markets. Holloway owns 18 hotels with 1,747 rooms. Holloway's trust units trade on the TSX under the symbol HLR.UN.
This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to the REIT's future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, financial results and plans and objectives of the REIT. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information is subject to certain factors, including risks and uncertainties, that could cause actual results to differ materially from what the REIT currently expects and there can be no assurance that such statements will prove to be accurate. Some of these risks and uncertainties are described under "Risk Factors" in Holloway's annual information form for the year ended December 31, 2011 which is available on the REIT's profile on the SEDAR website at www.sedar.com. The REIT does not intend to update or revise any such forward-looking information should its assumptions and estimates change.
For further information:
please contact Michael Rapps, Chairman of the REIT, at (416) 855-1925.