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MISSISSAUGA, ON, May 27, 2016 /CNW/ - R&R Real Estate Investment Trust (the "REIT") (TSXV: RRR.UN) today announced receipt of final acceptance from the TSX Venture Exchange (the "TSXV") of the REIT's notice of intention to make a normal course issuer bid ("NCIB"). Under the NCIB, the REIT will have the ability to purchase for cancellation up to a maximum of 1,000,000 Units on the open market, representing approximately 1.21% of the outstanding Units (after giving effect to the exchange of outstanding Class B units of subsidiary limited partnerships of the REIT).
The NCIB will commence on June 1, 2016 and remain in effect until the earlier of May 31, 2017 or the date on which the REIT has purchased the maximum number of Units permitted under the NCIB. Purchases of Units under the NCIB will be made in accordance with TSXV by-laws, rules and policies through the facilities of the TSXV, or through other permitted means (including through other published markets). The Units so purchased will be cancelled. The price paid for any repurchased units will be the market price of such Units at the time of acquisition. Raymond James Ltd. is conducting the NCIB on behalf of the REIT.
The REIT believes that its outstanding Units represent an attractive investment, and the ongoing purchase of its outstanding Units may increase unitholder value and constitutes a desirable use of the REIT's funds.
To the REIT's knowledge, none of the trustees, officers or other insiders of the REIT or any associate of any such persons, or any associate or affiliate of the REIT currently intends to sell Units to the REIT during the course of the NCIB.
The REIT has purchased 41,000 Units at an average price of $0.14 per Unit pursuant to a normal course issuer bid previously approved by the TSXV in February 2015, and which expired on March 2, 2016.
About R&R REIT
R&R REIT is an open-ended real estate investment trust focused on increasing unitholder value through the acquisition and ownership of hotel properties located in the United States.
SOURCE R&R Real Estate Investment Trust
For further information: please contact Bob Choo, Chief Financial Officer, R&R Real Estate Investment Trust, 905-206-7102, or e-mail [email protected]