TORONTO, Nov. 23, 2017 (GLOBE NEWSWIRE) -- Firm Capital American Realty Partners Corp. (the “ Company ”), (TSXV:FCA.U) (TSXV:FCA), is pleased to announce that it is proceeding with a non-brokered private placement (the “ Private Placement ”) in which it intends to raise up to US$10,000,000 and issue up to 1,333,333 common shares of the Company (the “ Shares ”) at a price of US$7.50 per Share. Purchasers in the Private Placement shall be permitted to acquire Shares in U.S dollars (the “ U.S. Price ”) or Canadian dollars (the “ Canadian Price ”). The Canadian Price will be calculated based on the U.S. Price and the Bank of Canada daily noon rate of exchange on or about the closing date of the Private Placement.
The Company will pay a finder's fee of 5.0% of the gross proceeds to certain eligible persons and/or dealers for subscriptions to the Private Placement completed by qualified investors. Participants in the Private Placement will be qualified to receive the full quarterly dividend of US$0.05625 per Share for shareholders of record on December 31, 2017, which will be payable on or about January 15, 2018.
Net proceeds of the Private Placement will be used by the Company to fund prospective acquisitions of income producing multi-family residential properties in the United States primarily in joint venture partnerships, to fund prospective investments in mortgage debt on real estate properties in the United States, for the repayment of debt, for working capital and for general corporate purposes.
For further information about the Company please visit www.sedar.com or the Company’s website at www.firmcapital.com .
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP. Firm Capital American Realty Partners Corp. (the “ Company ”) is a U.S. focused real estate investment entity that pursues real estate and debt investments through the following platforms:
- Income Producing Real Estate Investments: Acquisition of income producing real estate in major cities across the United States, primarily in joint venture partnerships with local industry expert owners/operators who retain property management responsibility; and
- Mortgage Debt Investments: Real estate debt and equity lending platform in major cities across the United States, focused on providing all forms of shorter-term bridge mortgage loans and joint venture capital.
DIVIDEND REINVESTMENT PLAN & SHARE PURCHASE PLAN The Company has a Dividend Reinvestment Plan (“ DRIP ”) and Share Purchase Plan (the “ Purchase Plan ” and collectively with the DRIP, the “ Plans ”) offered to all shareholders of the Company. The Plans enable shareholders to increase their investment in the Company by receiving dividend payments and/or optional cash payments in the form of common shares of the Company. A minimum purchase of US$3,000 on the last business day of each calendar quarter (a “ Quarterly Purchase Date ”) and maximum purchases of up to US$12,000 per year (payable in one lump sum or from time to time on a Quarterly Purchase Date) are permitted under the Purchase Plan. For further information about the Plans please visit www.tsxtrust.com or the Company’s website at www.firmcapital.com .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain 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 news release include, but are not limited to, statements regarding the Company’s single family property disposition program and debt repayments, which may not be completed within the estimated time frames specified above or at all. Failure to complete the steps described above or any delays in their implementation may have a material adverse effect upon the business of the Company and its market value. There is no assurance that the Company will be able to complete the disposition of the single property disposition portfolio at anticipated values or at all or that market conditions will support the debt and equity raises contemplated by the Company. There is no assurance that the implementation of the steps described above, even if completed as described above, will increase the market value of the Company’s securities, which is subject to numerous factors beyond the Company’s control.
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 Company holds properties; volatility of real estate prices; inability to complete the Company’s single family property disposition program or debt restructuring in a timely manner; 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 Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
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 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.
For further information, please contact:
Kursat Kacira President & Chief Executive Officer (416) 635-0221
Sandy Poklar Chief Financial Officer (416) 635-0221
