All amounts are in US dollars unless otherwise
stated
TORONTO, Oct. 16, 2017 /CNW/ - Firm Capital American
Realty Partners Corp. (the "Company"), (TSXV : FCA.U/FCA),
is pleased to issue this press release in regards to the following
matters:
FULL REPAYMENT OF NEW JERSEY
PROMISSORY NOTE
The Company is pleased to report that it has
fully repaid the outstanding balance on the $3.1 million, 5.5% New Jersey Promissory Note
("NJPN") from cash on hand.
PARTIAL REPAYMENT OF CONVERTIBLE DEBENTURES
With the
NJPN now fully repaid, the Company will focus its attention on the
continued repayment of the 7.0% Convertible Unsecured Debentures
(the "Debentures") from the cash proceeds of ongoing single
family home sales. To date, the Company has repaid approximately
$4.1 million, or 23%, of the
outstanding balance of the Debentures, leaving a current
outstanding balance of approximately $13.2
million. Further, the Company is preparing for a near-term
partial repayment of the Debentures for $0.3
million from cash on hand, thus expected to reduce the
outstanding balance to approximately $12.9
million.
PAYMENT OF FIRST DIVIDEND
The Company is also pleased
to announce that, further to the previously announced inaugural
dividend policy, it has paid its first cash dividend for the period
ended September 30, 2017. The Company
had previously declared and approved a cash dividend in the amount
of U.S. $0.01875 per common share for
shareholders of record on September 30,
2017, payable on October 16,
2017. The next cash dividend payment of U.S. $0.05625 per common share, as previously declared
and approved by the Company and for the quarter ended December 31, 2017, will occur on or about
January 15, 2018 for shareholders of
record on December 31, 2017. On an
annual basis, this quarterly dividend equates to U.S. $0.2250 per common share, or a 3.0% annual
dividend yield based on the U.S. $7.50 price per the Company's public offering of
common shares and warrants completed on May
29, 2017.
SENIOR MANAGEMENT ADDITION
The Company is also pleased
to announce that Elena Pankoff has
joined the Company as Vice President, Investment Portfolio
Management ("VPIPM"). Elena brings a wealth of experience in
Investment Portfolio Management including working at a number of
institutional asset and fund managers in acquisitions and portfolio
management. The appointment of the VPIPM is part of the asset
management agreement signed between the Company and the Asset
Manager.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm
Capital American Realty Partners Corp. is a U.S. focused real
estate investment entity that pursues real estate and debt
investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed by the Company primarily in joint-venture
partnerships with local industry expert partners who retain
property management responsibilities; and
- Mortgage Debt Investments: Real estate debt and equity
lending platform in major cities across the United States, focused on providing all
forms of bridge mortgage loans and joint venture capital.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Certain information in this news release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "intend" and similar expressions. Forward-looking
statements in this news release include, but are not limited to,
statements with respect to the Company's intention to complete the
sale of its single-family homes and ultimate debt repayments,
potential capital financing and growth opportunities, as well as
the Company's intention to acquire income producing U.S. real
estate assets and complete joint venture partnerships and mortgage
debt and equity lending investments. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions;
adverse factors affecting the U.S. real estate market generally or
those specific markets in which the Company holds properties;
volatility of real estate prices; inability to complete the
Company's single family property disposition program, debt
repayments or debt restructuring in a timely manner; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
industry and government regulation; changes in legislation, income
tax and regulatory matters; the ability of the Company to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks, including those described in the
Company's public disclosure documents on SEDAR at
www.sedar.com.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Additional information about the Company is available at
www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Corp.
