AIP Realty Trust Completes Second Tranche of Financing Round
AIP Realty Trust Completes Second Tranche of Financing Round
VANCOUVER, British Columbia -- AIP Realty Trust (the “Trust” or “AIP”) (TSXV: AIP.U) has successfully closed the second tranche of a previously announced non-brokered private placement ("Financing") involving Preferred Units – Series B Convertible, priced at US$0.50 each.
This Financing has had two tranches, with the first occurring earlier in this year and the second finalized recently. The Trust issued a total of 1,900,000 Preferred Units in this second tranche, yielding gross proceeds of US$950,000. Overall, AIP has issued a total of 3,000,000 Preferred Units across both tranches, amounting to gross proceeds of US$1,500,000.
All terms related to the Financing remain unchanged from earlier announcements made by the Trust. The terms and conditions governing the Preferred Units can be accessed on the Trust’s profile.
Under the agreements signed with subscribers of these Preferred Units, there are provisions that must be followed, including stipulations surrounding transfers and a commitment from the Trust to repurchase the Preferred Units if certain control thresholds are exceeded.
The proceeds from this Private Placement will be allocated for working capital and general corporate activities.
Completion of this Financing is still awaiting approval from the TSX Venture Exchange (the “TSXV”).
Each Preferred Unit issued in this second tranche is subject to a hold period of four months and one day from the issuance date. No finder's fees were involved in this Financing.
As part of this second tranche, one of the participating subscribers acquired 1,000,000 Preferred Units for US$500,000. Prior to this acquisition, the Subscriber held no securities in AIP. Following the close, this Subscriber now possesses approximately 12.62% of the Trust’s voting securities.
The acquisition of the Preferred Units was made independently and solely for investment purposes, with the Subscriber having the option to adjust their investments based on market conditions and other factors.
This new release is issued under National Instrument 62-103, which mandates the filing of an early warning report providing details on the Subscriber’s acquisition on SEDAR+.
About AIP Realty Trust
AIP Realty Trust operates as a real estate investment trust, focusing on a diverse portfolio of AllTrades branded Serviced Industrial Business Suites (“SIBS”). These facilities cater to small businesses in light industrial sectors across the United States. The portfolio attracts various small-space users such as contractors, suppliers, and small firms due to their low tenant turnover and stable cash flow. AIP Realty Trust intends to expand its operations from the Dallas-Fort Worth area to a national level.
The Trust has exclusive agreements to fund developments and acquire completed leasehold properties built across North America by its partner, AllTrades Industrial Properties, Inc. For more information about AIP Realty Trust, please reach out as detailed below.
For further information from the Trust, contact:
Leslie Wulf
Executive Chairman
(214) 679-5263
les.wulf@aiprealtytrust.com
Or
Greg Vorwaller
Chief Executive Officer
(778) 918-8262
Greg.vorwaller@aiprealtytrust.com
Frequently Asked Questions
1. What type of securities were involved in the AIP Realty Trust offering?
The offering involved Preferred Units – Series B Convertible at a price of US$0.50 each.
2. What were the total gross proceeds from the second tranche?
The second tranche resulted in gross proceeds of US$950,000, contributing to a total of US$1,500,000 when combined with the first tranche.
3. What is the intended use of the funds raised from this financing?
The proceeds will be used for working capital and general corporate purposes.
4. Are there any restrictions on the Preferred Units acquired?
Yes, the Preferred Units are subject to a hold period of four months and one day from the issuance date.
5. How does AIP Realty Trust plan to expand its operations?
AIP Realty Trust aims to expand its Serviced Industrial Business Suites offering beyond the initial focus on the Dallas-Fort Worth market to national levels.
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