Regal Lifestyle Communities Inc. announces completion of its previously announced $23 million public offering of common shares

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TORONTO, March 21, 2014 /CNW/ - Regal Lifestyle Communities Inc. ("Regal" or the "Company") (TSX: RLC) announced today that it has completed its previously announced public offering of  common shares of the Company (the "Common Shares") with a syndicate of underwriters, co-led by CIBC and TD Securities, on a bought deal basis (the "Offering"). A total of 2,968,150 Common Shares (including Common Shares issued pursuant to the exercise of the over-allotment option granted to the underwriters by the Company) were issued at a price of $7.75 per Common Share for total gross proceeds of approximately $23 million.  

The aggregate net proceeds from the Offering will be used by the Company to partially fund the acquisition of the Sunwood Retirement Home in Maple Ridge, British Columbia (the "Sunwood Property") and the Birkdale Retirement Home in Milton, Ontario (the "Birkdale Property" and together with the Sunwood Property, the "Acquisition Properties") and for general corporate purposes. The Company expects to use approximately $4.6 million and $9.9 million of the net proceeds of the Offering towards the purchase prices for the Sunwood Property and Birkdale Property, respectively, excluding closing costs. The Company expects to complete the acquisition of the Sunwood Property and the Birkdale Property on or about March 21, 2014 and on or about March 31, 2014, respectively.  In the event that the acquisition of one or both of the Acquisition Properties is not completed, the aggregate net proceeds of the Offering will be used by the Company to fund future acquisitions and for general corporate purposes.

Copies of the Company's short form prospectus are available on SEDAR at www.sedar.com

The Common Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy the Common Shares in the United States or to, or for the account or benefit of, U.S. Persons.  

About Regal Lifestyle Communities Inc.

Regal Lifestyle Communities Inc. is a corporation incorporated under the laws of the Province of Ontario which currently owns a portfolio of 14 income-producing retirement communities offering a continuum of care, from independent serviced living to a full range of assisted living programs. The 14 retirement communities comprise over 1,900 suites, primarily located in the Province of Ontario and including a property located in each of the Provinces of Saskatchewan and Newfoundland and Labrador.

Forward Looking Information

Certain information in this press release may constitute forward-looking statements that involve a number of risks and uncertainties, including statements with respect to the Company and its operations, strategy, financial performance and financial condition, as well as with respect to the closing of the acquisition of the Acquisition Properties. Forward-looking statements use the words "believe", "expect", "anticipate", "may", "should", "intend", "estimate" and other similar terms, which do not relate to historical matters.   Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause the actual results to differ materially from those indicated. Such factors include, but are not limited to, general economic conditions and the failure to receive any required approvals or consents in connection with the acquisition of the Acquisition Properties or the failure to satisfy or waive any other condition to the acquisition of the Acquisition Properties. Also see the risk factors identified in the public filings of the Company available on www.sedar.com. The Company believes that the expectations reflected in its forward-looking statements are based on reasonable assumptions; however, the Company can give no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Readers should be cautioned not to place undue reliance on the forward-looking statements.

SOURCE: Regal Lifestyle Communities Inc.

Simon Nyilassy, President and Chief Executive Officer, Regal Lifestyle Communities Inc., [phone]; Harold Atterton,Chief Financial Officer, Regal Lifestyle Communities Inc., [phone]