Firm Capital American Realty Partners Trust Announces Intention to Commence A Normal Course Issuer Bid For Its Debentures
May 12 2020 - 4:01PM
Firm Capital American Realty Partners Trust (the
“
Trust”) (TSXV: FCA.UN) (TSXV: FCA.U) is pleased
to announce that it plans to file an application with the TSX
Venture Exchange (the "
Exchange") to commence a
normal course issuer bid (the "
Bid") to purchase
up to $1,810,800 principal amount of the 6.25% convertible
unsecured subordinated debentures of the Trust due June 30, 2026
("
Debentures") (TSXV:FCA.DB), being equal to 10%
of the Public Float (as defined in the policies of the Exchange) as
at May 11, 2020. The Bid remains subject to the approval of the
Exchange but if approved will remain in place for a period of 12
months unless terminated earlier at the Trust's discretion.
The board of trustees of the Trust is of the
opinion that the recent market prices of its Debentures do not
reflect the underlying value of its assets and future prospects,
and that repurchasing Debentures is one way of creating unitholder
value.
If approved, all Debentures purchased pursuant
to the Bid will be made on the open market through the facilities
of the Exchange and the purchase and payment for the acquired
Debentures will be made by the Trust in accordance with the
requirements of the Exchange.
To the knowledge of the Trust, no trustee,
senior officer, or other insider of the Trust, or any associate of
such person, or any associate or affiliate of the Trust, currently
intends to sell any Debentures into the Bid. However, sales by such
persons through the facilities of the Exchange or any other
available market or alternative trading system in Canada may occur
if the personal circumstances of any such person change or if any
such person makes a decision unrelated to the Bid. The benefits to
any such person whose Debentures are purchased would be the same as
the benefits available to all other holders whose Debentures are
purchased.
ABOUT FIRM CAPITAL AMERICAN REALTY
PARTNERS TRUSTFirm Capital American Realty Partners Trust
is a U.S. focused real estate investment entity that pursues income
producing real estate and mortgage debt investments through
the following platforms:
• Income Producing Real Estate
Investments:
- Core Markets Wholly Owned
Investments: The Trust is focused on growing its wholly
owned multi-residential property portfolio in large core markets
with attention to cities located in Texas, Florida, New Jersey,
North and South Carolina, Colorado, Georgia and New York.
- Core and Non-Core Markets:
Joint Venture Investments: The Trust will also purchase in
both core and non-core markets where it lacks knowledge or
experience, partial ownership interests in multi-residential
properties with industry leaders as partners. These partners bring
both expertise in operations and knowledge, especially in non-core
markets. The Trust strives to have a minimum 50% ownership interest
and will fund the equity in a combined preferred/common equity
investment structure. The preferred equity provides a fixed rate of
return for investors in the Trust, resulting in a secured structure
ahead of the partners ownership interest, while the common equity
provides investors an upside return for investors as the investment
meets its targeted objectives.
• Mortgage Debt Investments:
The Trust, using Firm Capital’s 30-year plus experience as a leader
in the mortgage lending industry, provides bridge lending of
mortgage and preferred capital secured by
residential/multi-residential properties.
FORWARD LOOKING
INFORMATIONCertain 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 press release include statements relating to the
timing and amount of Debentures that may be acquired under the
normal course issuer bid and the Trust's future business plans.
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 Trust holds
properties; volatility of real estate prices; 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 Trust to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks, including those described in the
Trust’s public disclosure documents on SEDAR at www.sedar.com.
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. Additional information
about the Trust is available at www.firmcapital.com or
www.sedar.com.
For further information, please contact:
Eli DadouchPresident & Chief Executive Officer(416)
635-0221 |
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Sandy PoklarChief Financial Officer(416) 635-0221 |
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