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SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES./
TORONTO, May 17, 2022
/CNW/ - Flagship Communities Real Estate Investment Trust (TSX:
MHC.U) (the "REIT") announced today that it has established a
US$50 million at-the-market equity program (the "ATM
Program").
The ATM Program allows the REIT to issue from treasury, at its
discretion, up to US$50 million of
trust units of the REIT (the "REIT Units") to the public from time
to time. Distributions of REIT Units pursuant to the ATM Program,
if any, will be made in accordance with the terms of an equity
distribution agreement dated May 17,
2022 (the "Equity Distribution Agreement") among the REIT,
Canaccord Genuity Corp. and BMO Capital Markets. REIT Units sold
under the ATM Program will be sold directly on the Toronto Stock
Exchange, or such other recognized marketplaces to the extent
permitted, at prevailing market prices at the time of sale, all in
accordance with the terms of the Equity Distribution Agreement. The
ATM Program will be effective until June 7,
2023, unless terminated earlier in accordance with the terms
of the Equity Distribution Agreement. The REIT intends to use the
net proceeds from REIT Units sold under the ATM Program, if any, to
fund acquisitions, for repayment of indebtedness and for
general working capital purposes.
"We believe the ATM Program will provide the REIT with an
attractive alternative source to access incremental equity capital,
and will be used in concert with other existing funding
sources. We view the ATM Program as another tool that adds to
our capital raising capabilities, and one element of our long–term
sources of capital that can be used to fund growth," commented
Kurt Keeney, President and Chief
Executive Officer of the REIT.
The ATM Program is designed to provide the REIT with additional
financing flexibility should it be required in the future. The
volume and timing of distributions under the ATM Program, if any,
will be determined at the REIT's sole discretion. Since the REIT
Units distributed pursuant to the ATM Program will be distributed
to the public at prevailing market prices at the time of sale,
prices may vary among purchasers and during the period of
distribution.
The ATM Program has been established pursuant to a prospectus
supplement dated May 17, 2022 (the
"Prospectus Supplement") to the REIT's short form base shelf
prospectus dated May 7, 2021 (the
"Base Shelf Prospectus"), in each case filed with the securities
regulatory authorities in each of the provinces and territories of
Canada. Further details of the ATM
Program are set out in the Prospectus Supplement. The Prospectus
Supplement, Base Shelf Prospectus and Equity Distribution Agreement
are available on SEDAR under the REIT's issuer profile at
www.sedar.com.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The REIT Units have not been, nor will they
be, registered under the United States Securities Act of 1933, as
amended, (the "1933 Act") and may not be offered, sold or
delivered, directly or indirectly, in the
United States, or to, or for the account or benefit of,
"U.S. persons" (as defined in Regulation S under the 1933 Act),
except pursuant to an exemption from the registration requirements
of the 1933 Act.
About Flagship Communities Real
Estate Investment Trust
Flagship Communities Real Estate Investment Trust is an
internally managed, unincorporated, open-ended real estate
investment trust established pursuant to a declaration of trust
under the laws of the Province of Ontario. The REIT has been formed to own and
operate a portfolio of income-producing manufactured housing
communities located in Kentucky,
Indiana, Ohio, Tennessee, Missouri, Arkansas and Illinois; including a fleet of manufactured
homes for lease to residents of such housing communities.
Forward-Looking
Statements
This press release contains statements that include
forward-looking information within the meaning of Canadian
securities laws, including the potential issuance, sale and
distribution of REIT Units pursuant to the ATM Program, including
the price, volume and timing of any distributions, and the intended
use of the net proceeds from the ATM Program. In some cases,
forward-looking statements can be identified by terms such as
"may", "will", "could", "occur", "expect", "anticipate", "believe",
"intend", "estimate", "target", "project", "predict", "forecast",
"continue", or the negative thereof or other similar expressions
concerning matters that are not historical facts.
These forward-looking statements reflect the current
expectations of the REIT regarding future events. The REIT has
based these forward-looking statements on certain assumptions about
future events and trends. While management considers these
assumptions to be reasonable based on currently available
information, they may prove to be incorrect.
Although management believes the expectations reflected in such
forward-looking statements are reasonable and represent the REIT's
internal expectations and beliefs at this time, such statements
involve known and unknown risks and uncertainties and may not prove
to be accurate and certain objectives and strategic goals may not
be achieved. A variety of factors, many of which are beyond the
REIT's control, could cause actual events to differ materially from
current expectations of events expressed or implied by such
forward-looking statements, such as the risks identified in the
REIT's current annual information form available at www.sedar.com,
including under the heading "Risks and Uncertainties" therein.
Readers are cautioned against placing undue reliance on
forward-looking statements. Except as required by applicable
Canadian securities laws, the REIT undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise, after
the date on which the statements are made.
SOURCE Flagship Communities Real Estate Investment Trust