CALGARY, Oct. 17, 2019
/CNW/ - Genesis Land Development Corp. ("Genesis") is
pleased to announce the completion of purchase of the $20.5 million vendor take-back mortgage
("VTB") from Limited Partnership Land Pool (2007)
("LPLP" or the "Partnership") for $22.02 million. The VTB bears interest at a rate
of 6.5% per annum, payable in arrears in December of each year,
with the principal repayable in December
2020.
The net cash proceeds to the Partnership of the sale (after
repayment of $11.66 million owing by
the Partnership under the loan by Genesis) were $10.36 million or $0.2364 per limited partnership unit. Genesis
funded the VTB purchase price from its corporate resources and
credit facilities and intends to re-finance this amount with a
third-party lender in the fourth quarter of 2019.
A pro rata distribution of the net cash proceeds was paid by the
Partnership to 2474514 Ontario Inc., which holds 22.7% of all of
the issued and outstanding limited partnership units of the
Partnership on behalf of Caja Paraguaya de Jubilaciones y Pensiones
del Personal de Itaipu Binacional ("Cajubi"). Genesis
reimbursed a portion of Cajubi's legal fees and other costs
associated with negotiating and evaluating the proposed sale
transaction in the amount of $100,000.
The remaining funds will be available for distribution to all
other limited partners following receipt of a letter of transmittal
containing a release and undertaking and the Partnership obtaining
appropriate Court approvals. Funds will be held under a court
approved process for those limited partners who do not provide a
letter of transmittal pending a resolution of a proposed class
action involving the Partnership.
About Genesis
Genesis Land Development Corp. is a land developer and
residential home builder in the Calgary Metropolitan Area. The Corporation's
common shares are listed on the Toronto Stock Exchange (TSX:
GDC).
ADVISORIES
Forward-Looking Statements
This news release
may contain certain statements which constitute forward-looking
statements or information ("forward-looking statements") within the
meaning of applicable securities legislation, including Canadian
Securities Administrators' National Instrument 51-102 Continuous
Disclosure Obligations, concerning the proposed distribution of the
net cash proceeds of the VTB sale, the appropriate court approvals
and the proposed class action. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".
Although Genesis believes that the anticipated future
results, performance or achievements expressed or implied by
forward-looking statements are based upon reasonable assumptions
and expectations, the reader should not place undue reliance on
forward-looking statements because they involve assumptions, known
and unknown risks, uncertainties and other factors many of which
are beyond the Corporation's control, which may cause the actual
results, performance or achievements of Genesis to differ
materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking
statements. Accordingly, Genesis cannot give any assurance that its
expectations will in fact occur and cautions that actual results
may differ materially from those in the forward-looking
statements.
Factors that could cause actual results to differ materially
from those set forth in the forward-looking statements include, but
are not limited to: the failure to obtain any necessary court
approvals as proposed or at all; adverse events or outcomes of the
proposed class action litigation, ability to access capital on
favourable terms; not realizing on the anticipated benefits from
transactions or not realizing on such anticipated benefits within
the expected time frame; and other risks and factors described from
time to time in the documents filed by Genesis with the securities
regulators in Canada available at
www.sedar.com, including the Corporation's MD&A under the
heading "Risks and Uncertainties" and the AIF under the heading
"Risk Factors".
The forward-looking statements contained in this news release
are made as of the date of this news release and, except as
required by applicable law, Genesis does not undertake any
obligation to publicly update or to revise any of the
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Genesis Land Development Corp.