EDMONTON, June 21, 2016 /CNW/ - SpruceLand Properties Inc. ("SpruceLand" or the "Corporation") announced today a cash dividend of $25.00 per share. As previously announced, with the recent closing of the sale of the Corporation's manufactured homes communities and commercial properties portfolios, the Corporation has disposed of approximately 96% of its real estate assets and is now in a position to complete an initial distribution to its shareholders, as contemplated by the Corporation's management information circular dated February 11, 2016.
Dividends per share will be comprised of: (i) a $12.00 per share capital dividend, (ii) a $10.00 per share eligible dividend and (iii) a $3.00 per share regular ineligible dividend. The dividends will be payable to the shareholders of record at the close of business on June 22, 2016 and dividend cheques will be mailed to shareholders by Computershare Trust Company of Canada, the Corporation's transfer agent, on June 29, 2016.
In accordance with the Corporation's previously disclosed objective to wind-up in due course, the Corporation's Dividend Reinvestment Plan ("DRIP") was terminated effective June 20, 2016. Consequently, no shares will be issued under the DRIP and dividends will be paid in cash only.
With the termination of the DRIP, as required by the terms of the plan, a cheque for the value of any fractional common shares in a participant's account will also be mailed to the participant by Computershare Trust Company of Canada. For this purpose, the share value is the fair value of $44.00 per share, as set forth in the independent Fairness Opinion dated January 22, 2016 and included in the Corporation's management information circular dated February 11, 2016.
The completion of the above-referenced sales, the termination of the DRIP and the payment of the initial distribution to its shareholders are important components of the liquidation and wind-up process being undertaken by the Corporation, which liquidation and wind-up was approved by special resolution at the meeting of the shareholders held on March 10, 2016. The next steps for the Corporation include: (i) making an application to the Alberta Securities Commission to cease to be a reporting issuer; (ii) completing the sale of the Corporation's residual assets, consisting principally of two investment properties and raw land holdings; and (iii) completing the Corporation's 2016 fiscal year-end financial statements and corporate tax return filings and remittances. For a more complete explanation of the process by which the Corporation will be liquidated and wound-up, please see the Corporation's management information circular dated February 11, 2016.
SpruceLand Properties Inc., formerly Spruce Land Developments Ltd., founded in 1969 with a single multi-family project, had grown consistently to have, prior to the recent real estate dispositions, a diversified portfolio of revenue producing properties including office, retail and industrial buildings and manufactured home parks in Alberta, Saskatchewan and BC. SpruceLand Properties Inc. is a Canadian controlled private corporation for tax purposes and a reporting issuer in the Province of Alberta. The Corporation intends to make an application to the Alberta Securities Commission to cease to be a reporting issuer in due course and to thereafter proceed with an orderly liquidation of its assets and wind-up of its operations.
Caution Regarding Forward-Looking Statements
This press release may contain "forward-looking information" as defined under applicable Canadian securities law ("forward-looking information" or "forward-looking statements") which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the Corporation. Statements other than statements of historical fact contained in this press release may be forward-looking information. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to the contemplated initial distribution to shareholders and other expectations, projections or other characterizations of future events or circumstances and the future economic performance of the Corporation. The Corporation has based these forward-looking statements on its current expectations and assumptions about future events, which may prove to be incorrect.
When relying on forward looking statements to make decisions, readers are cautioned not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and do not take into account the effect of transactions or other items announced or occurring after the statements are made. All forward-looking information in this press release speaks as of the date of this press release. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. The Corporation does not undertake any obligation to update any such forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Spruceland Properties Inc.
For further information: Steve Cribb, President & CEO, 16880 - 111 Avenue, Edmonton, AB, T5M 4C9, Phone: 780.424.5775, Fax: 780.425.8577, Email: [email protected]