WINNIPEG,
MB, July 4, 2024 /CNW/ - Lanesborough Real
Estate Investment Trust ("LREIT") (TSXV: LRT.UN) today
provided an update with regards to its plans for future operations
following the failure by the holders of its trust units
("Unitholders") to approve a special resolution approving
the sale of all of its properties at the annual general and special
meeting of Unitholders held on June 27,
2024. As previously announced, as of March 31, 2024, LREIT had total liabilities of
$201,055,897, including $159,169,309 owing to related parties 2668921
Manitoba Ltd. and Shelter Canadian Properties Ltd.
("Shelter") and has no prospect of raising the capital to
repay these amounts.
Effective immediately, Shelter will no longer provide most
administrative services to LREIT due to the inability of LREIT to
pay amounts outstanding to Shelter. Accordingly, LREIT will no
longer be making ongoing public disclosure, including filing
financial statements, in accordance with applicable securities laws
or paying the fees of the TSX Venture Exchange ("TSXV"). As
a result, management of LREIT expects that LREIT will likely be
issued a cease trade order with respect to trading in its
securities by The Manitoba Securities Commission or other
securities regulatory authorities in the near future. LREIT also
anticipates that trading in its securities will be halted by the
TSXV and its listing moved to the NEX board of the TSXV.
LREIT also announced that Charles K.
Loewen and Earl S. Coleman
have each resigned as independent trustees of LREIT. Accordingly,
Arni Thorsteinson is now the sole
trustee of LREIT.
Subject to the financial constraints of LREIT noted above,
Management of LREIT plans to continue to operate LREIT's business
in the ordinary course to the extent possible.
ABOUT LREIT
LREIT is a real estate investment trust, which is listed on the
TSX Venture Exchange under the symbol LRT.UN (Trust Units). For
further information on LREIT, please visit our website at
www.lreit.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as the term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Certain statements contained in this press release are
"forward-looking statements" that reflect the expectations of
management regarding LREIT. Readers are cautioned not to place
undue reliance on forward-looking information. All statements other
than statements of historical fact contained herein are
forward-looking statements. Forward looking statements are often,
but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "project", "predict", "potential", "targeting", "intend",
"could", "might", "should", "believe" and similar expressions. Such
forward-looking statements reflect management's current beliefs and
are based on information currently available to management.
Forward looking statements involve significant risks and
uncertainties. A number of factors that could cause actual results
to differ materially from the results discussed in forward-looking
statements are discussed in LREIT's management discussion and
analysis for the three month period ended March 31, 2024 available on SEDAR+ at
www.sedarplus.ca. Although the forward-looking statements
contained herein are based upon what management believes to be
reasonable assumptions, LREIT cannot assure investors that actual
results will be consistent with these forward-looking
statements.
The forward-looking statements contained herein are expressly
qualified in their entirety by this cautionary statement.
Forward-looking statements are made as of the date hereof, or such
other date specified in such statements, and neither LREIT nor any
other person assumes any obligation to update or revise such
forward-looking statements to reflect new information, events or
circumstances, except as expressly required by applicable
securities law.
SOURCE Lanesborough Real Estate Investment Trust
