TORONTO, September 10 /CNW/ - David Singelyn, President of Canadian
Mini-Warehouse Properties Company, the general partner of Public Storage
Canadian Properties (the "Partnership") (TSX: PUB) announced that the
Partnership has received all necessary approvals from Canadian securities
regulators and the Toronto Stock Exchange for its previously announced rights
offering (the "Rights Offering").
The Rights Offering will provide the existing holders ("Unitholders") of
the units ("Units") of the Partnership that are Qualifying Persons (as defined
below) with the right (the "Right") to purchase additional Units in the
Partnership. Assuming all the Rights are exercised, the Rights Offering is
expected to raise net proceeds of approximately $36.4 million, which the
Partnership intends to use to reduce amounts outstanding under the
Partnership's credit facility and to finance the acquisition and development
of additional properties.
Unitholders of record as at the close of business on September 18, 2007
(the "Record Date") will receive one Right for each Unit held. Rights will be
evidenced by fully transferable certificates ("Rights Certificates") which
will be issued in registered form. A rights offering circular will be mailed
along with the Rights Certificates to registered Unitholders on or around
September 20, 2007.
The Partnership's limited partnership agreement restricts the ownership
of Units to persons who are "Qualifying Persons" defined as any person that:
(i) is not a non-resident for the purposes of the Income Tax Act (Canada) (the
"Tax Act"); (ii) is not a person, an interest in which would be a "tax shelter
investment" as defined in the Tax Act; and (iii) if a partnership, is a
"Canadian partnership" under the Tax Act.
A holder of Rights that is a Qualifying Person (a "Rightsholder") is
entitled to subscribe for Units at a price of $20.25 per Unit for every four
Rights held at any time up to the expiry of the Rights at 4:00 p.m. (Toronto
time) on October 12, 2007. Rightsholders may only subscribe for whole Units.
No fractional Units will be issued.
Unitholders that exercise all of the Rights as evidenced by their Rights
Certificates may also subscribe for additional Units that may be available as
a result of unexercised Rights. Unitholders should refer to their Rights
Certificate and the rights offering circular for additional information with
respect to subscribing for additional Rights.
Unitholders may exercise their Rights by forwarding the completed Rights
Certificate along with the applicable funds to CIBC Mellon Trust Company
("CIBC Mellon"). CIBC Mellon must receive the Rights Certificates and the
required funds by 4:00 p.m. on October 12, 2007.
The Rights will be listed and posted for trading on the TSX under the
symbol PUB.RT and Unitholders who do not wish to exercise their Rights may
sell them on the Toronto Stock Exchange.
Unitholders requiring additional information with respect to the Rights
Offering may refer to the copy of the circular which has been filed on SEDAR
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the securities
in any state or jurisdiction, including the United States, in which such
offer, solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state or jurisdiction. Any
public offering of securities to be made in the United States can only be made
pursuant to an effective registration statement. The Partnership has no
intention of filing such a registration statement in connection with this
Public Storage Canadian Properties is a publicly held limited partnership
that owns, and derives substantially all of its income from, 24 self-storage
facilities, of which fifteen are located in Ontario, five are located in
British Columbia, three are located in Quebec and one is located in Alberta.
In addition, the Partnership owns a parcel of land in Oakville, Ontario, for
development into a self-storage facility. More information about the
Partnership is available on the Internet at www.publicstoragecanada.com.
For further information:
For further information: Public Storage Canadian Properties Vincent
Chan, (866) PS-CANADA (866) 772-2623