MISSISSAUGA, ON, Oct. 29, 2015 /CNW/ - Morguard Corporation (TSX: MRC) ("Morguard") announced today that, Morguard acquired 1,675,000 rights (the "Rights" and individually a "Right") of Temple Hotels Inc. ("Temple Hotels") at an average weighted price per Right of $0.047. One common share (a "Common Share") of Temple Hotels may be acquired upon the exercise of 1.133 Rights and the payment of $1.10 per Common Share.
The 1,675,000 Rights acquired by Morguard entitle Morguard to acquire for 1,478,375 Common Shares, representing approximately 2.7% of the issued and outstanding Common Shares of Temple Hotels on a partially diluted basis assuming the exercise of all of the Rights held by Morguard into Common Shares and the conversion of the Temple Hotel convertible debentures held by Morguard only.
Morguard currently holds 4,985,373 Common Shares, 14,486,873 Rights entitling Morguard to acquire 12,786,294 Common Shares, and convertible debentures of Temple Hotels that are convertible into a maximum of 526,284 Common Shares. Based on 41,200,108 Common Shares outstanding, and assuming the full exercise of all of the Rights issued under the rights offering being conducted by Temple Hotels and the conversion of the Temple Hotel debentures held by Morguard only, Morguard would hold approximately 23.4% of the then issued and outstanding Common Shares (approximately 33.6% assuming the exercise/conversion of Rights and debentures held by Morguard only).
The Rights and Common Shares were acquired for investment purposes. Morguard and its affiliates may, from time to time, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over securities of Temple Hotels through market transactions, private agreements or otherwise.
This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issuers which requires a report to be filed under the Company's profile on SEDAR (www.sedar.com) containing additional information respecting the foregoing matters. A copy of such report may be obtained by contacting Beverley Flynn at Morguard Corporation, 55 City Centre Drive, Suite 1000, Mississauga, Ontario L5B 1M3.
About Morguard Corporation
Morguard Corporation is a major North American real estate and property management company. It has extensive retail, office, industrial and residential holdings owned directly and through its investment in Morguard REIT and Morguard North American Residential REIT. Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at more than $19 billion.
For more information, please visit Morguard.com.
SOURCE Morguard Corporation
For further information: Morguard Corporation, K. Rai Sahi, Chairman and CEO, T 905.281.3800; Beverley G. Flynn, Vice President. General Counsel, T 905.281.3800