TORONTO, Nov. 9, 2018 /CNW/ - Firm Capital American
Realty Partners Corp. (the "Company"), (TSXV : FCA.U/FCA) is
pleased to announce that it has successfully closed its previously
announced non-brokered private placement (the "Private
Placement") of units of the Company (the "Units").
Pursuant to the Private Placement, the Company issued 808,643 Units
at a price of US$8.10 per Unit for
gross proceeds of approximately US$6.6
million.
Each Unit is comprised of one common share (each, a "Common
Share") and one Common Share purchase warrant (each, a
"Warrant"). Each Warrant entitles the holder to purchase one
additional Common Share at an exercise price of US$9.50 for a period of 24 months following the
date of issue, subject to customary adjustment provisions.
The net proceeds of the Private Placement will be used by the
Company to fund prospective acquisitions of income-producing
multi-family residential properties in the U.S. primarily in joint
venture partnerships, to fund prospective investments in mortgage
debt on real estate properties in the
United States, for the repayment of corporate debt, for
working capital and for general corporate purposes.
Further, the Company is also pleased to announce that the Ajmera
family was an investor in the Private Placement and through
Ojus Ajmera has joined the board as
an independent director.
Certain insiders of the Company participated in the Private
Placement. Such participation represents a related-party
transaction under Multilateral Instrument 61-101 - Protection of
Minority Security Holders in Special Transactions ("MI
61-101"), but the transaction is exempt from the formal
valuation and minority shareholder approval requirements of MI
61-101 as neither the fair market value of the subject matter of
the transaction, nor the consideration paid, exceed 25% of the
Company's market capitalization.
Pursuant to applicable Canadian securities laws, all securities
issued pursuant to the Private Placement are subject to, among
other things, a statutory hold period of four months and one day,
which expires on March 10, 2019. The
Private Placement remains subject to the final approval of the TSX
Venture Exchange.
For further information about the Company please visit
www.sedar.com or the Company's website at www.firmcapital.com.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
The
Company 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 solely by the Company or in joint-venture partnership
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 use of proceeds from the Private
Placement, 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.
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
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; the TSX Venture Exchange not providing its final
approval for the Private Placement and other risks.
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 TSX Venture 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.
SOURCE Firm Capital American Realty Partners Corp.
