EDMONTON, June 29, 2018 /CNW/ - SpruceLand Properties Inc. ("Corporation") announced that it anticipates being in a position to complete its dissolution in 2023. Originally, it had anticipated being able to dissolve in 2018 after establishment of a reserve fund that would cover post-dissolution costs for up to six years. The Corporation now intends to dispense with the concept of a reserve fund and instead defer dissolution until 2023 by which time the statutory limit of significant potential tax liabilities will have passed.
On June 15, 2018, the Corporation reported to shareholders with respect to a cash distribution to shareholders of $10.50 per share. As at December 31, 2015, the last financial reporting date prior to approval of the Corporation's Proposal to Dissolve, the Company's net asset value per share, estimated on a fully diluted basis, was $41.88 and estimated dissolution and windup costs were $3.62 per share, on which basis the resulting estimated net distribution would be $38.26 per share. With the most recent distribution of $10.50 per share and previous distributions totaling $32.50 per share, aggregate distributions to date are $43.00 per share.
On March 10, 2016, by special resolution at a meeting of the Corporation's shareholders, the Corporation obtained approval to, among other things, liquidate its assets, discharge its liabilities, distribute its remaining property in one or more distributions to its shareholders and to subsequently dissolve pursuant to the provisions of the Business Corporations Act (Alberta).
Caution Regarding Forward-Looking Statements
This press release contains "forward-looking information" as defined under applicable Canadian securities law ("forward-looking information" or "forward-looking statements"). 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 events or other factors occurring or arising after the statements are made.
SOURCE Spruceland Properties Inc.
For further information: Steve Cribb, President & CEO, Phone: 780.424.5775, Email: [email protected]