AIP Realty Trust Completes Second Tranche of Financing Round
VANCOUVER, British Columbia -- AIP Realty Trust (the “Trust” or “AIP”) (TSXV: AIP.U) has successfully finalized the second tranche of its previously announced non-brokered private placement ("Financing"), which involves Preferred Units – Series B Convertible, priced at US$0.50 each.
This Financing consists of two tranches, with the first one completed earlier this year and the second one recently concluded. In this second tranche, the Trust issued a total of 1,900,000 Preferred Units, generating gross proceeds of US$950,000. In total, AIP has issued 3,000,000 Preferred Units across both tranches, resulting in total gross proceeds of US$1,500,000.
All terms related to this Financing remain consistent with the earlier announcements made by the Trust. You can find the terms and conditions governing the Preferred Units on the Trust’s profile.
According to the agreements with subscribers of these Preferred Units, there are specific provisions that must be adhered to, including regulations regarding transfers and a commitment from the Trust to repurchase the Preferred Units if certain control thresholds are surpassed.
The funds raised from this Private Placement will be used for working capital and general corporate activities.
Completion of this Financing is still pending 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 date of issuance. Notably, no finder's fees were incurred during this Financing.
As part of this second tranche, one of the participating subscribers acquired 1,000,000 Preferred Units for US$500,000. Before this acquisition, the Subscriber held no securities in AIP. After the transaction, this Subscriber now owns approximately 12.62% of the Trust’s voting securities.
The acquisition of the Preferred Units was made independently and solely for investment purposes, allowing the Subscriber the flexibility to adjust their investments based on market conditions and other factors.
This announcement is issued under National Instrument 62-103, which requires the filing of an early warning report detailing the Subscriber’s acquisition on SEDAR+.
About AIP Realty Trust
AIP Realty Trust functions as a real estate investment trust, concentrating on a diverse portfolio of AllTrades branded Serviced Industrial Business Suites (“SIBS”). These facilities are designed to support small businesses in light industrial sectors throughout the United States. The portfolio attracts a variety of small-space users, including contractors, suppliers, and small firms, due to their low tenant turnover and stable cash flow. AIP Realty Trust plans to expand its operations from the Dallas-Fort Worth area to a national scale.
The Trust has exclusive agreements to finance developments and acquire completed leasehold properties constructed across North America by its partner, AllTrades Industrial Properties, Inc. For more information about AIP Realty Trust, please reach out using the contact details provided 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, each priced at US$0.50.
2. What were the total gross proceeds from the second tranche?
The second tranche generated 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 allocated 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 date of issuance.
5. How does AIP Realty Trust plan to expand its operations?
AIP Realty Trust aims to broaden its Serviced Industrial Business Suites offering beyond the initial focus on the Dallas-Fort Worth market to a national scale.
