Canadian Net REIT closes $ 20.1 million buyback transaction
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MONTREAL, August 03, 2021 (GLOBE NEWSWIRE) – (TSX-V: NET.UN) Canadian Net Real Estate Investment Trust (“Canadian Network“or the”Confidence“) is pleased to announce that it has today closed its previously announced public offering (the”Offer”) Of a total of 2,702,500 trust units (“UnitsAt a price of $ 7.45 per Unit for gross proceeds of approximately $ 20.1 million from a syndicate of underwriters led by Canaccord Genuity Corp. and Paradigm Capital Inc., and comprising CIBC Capital Markets, iA Private Banking, Laurentian Bank Securities Inc., Desjardins Securities Inc., and Echelon Wealth Partners Inc. (collectively, the “Subscribers“).
The Offering consists of Units issued on full exercise by the Underwriters of the Over-Allotment Option granted to them under the Underwriting Agreement dated July 21, 2021 between the Trust and the Underwriters.
The Trust intends to use the net proceeds of the Offering to fund announced and future acquisitions, to fund planned development projects, to repay certain debts that may be reused in the future, and for general business and financial purposes. working capital.
Certain trustees of the Trust acquired a total of 50,750 Units under the Offering for aggregate gross proceeds of $ 378,087.50 to the Trust. Each participation of the Trustee in the Offer is considered to be a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (In Quebec, Regulation 61-101 respecting the Protection of Minority Security Holders in Special Transactions) (“MI 61-101“). The participation of the Trustees in the Offering is exempt from minority approval and formal valuation requirements in accordance with the exemptions set out in Sections 5.5 (a) and 5.7 (1) (a) of NI 61-101, as neither fair value nor the consideration paid by the Trustees for the Units exceeded 25% of the market capitalization of the Trust. A material change report with respect to this related party transaction could not be filed less than 21 days before the closing of the offering due to the launch of the offering on July 15, 2021 and the confirmation of the conditions of participation of the investment trustees. shortly before closing. The placement was unanimously approved by the board of trustees of Canadian Net, each of the participating trustees abstaining from voting on their respective participation in the placement.
CLOSURE OF THE PROPERTY OF THE CITY OF QUEBEC
On July 22, 2021, the Trust completed the acquisition of a grocery store property operated under the IGA banner in Quebec City, Quebec for approximately $ 6.2 million. The property is strategically located on Boulevard Wilfrid-Hamel, a very busy artery in Quebec City.
ACQUISITION OF THE BROMONT PROPERTY
On July 26, 2021, the Trust waived the conditions for acquiring a commercial property located in Bromont, Quebec (the “Bromont propertyWhich is currently leased by a restaurant operated under the “East Side Mario’s” banner, and represents 5,730 square feet of leasable area. The total consideration to be paid by the Trust for the Bromont property is approximately $ 2.35 million.
About Canadian Net – Canadian Net Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and unmanaged commercial real estate properties.
Forward-looking statements – This press release contains forward-looking information as defined by applicable securities laws. Canadian Net cautions the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from the results anticipated in these statements. These include risks related to economic conditions, risks associated with the local real estate market, dependence on the financial position of tenants, uncertainties related to real estate activities, changes in interest rates, availability of financing under the form of debt or equity, the ability of Canadian Net to use the net proceeds of the offering as disclosed, the effects of adopting new standards and the risks of COVID-19, including various recommendations, orders and measures by government authorities in an attempt to limit the pandemic, as well as other risks and factors described from time to time in documents filed by Canadian Net with securities regulators, including the report of management of the Trust. Canadian Net does not intend or undertake to update or change its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority. .
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.
For more information, please contact Jason Parravano at (450) 536-5328.