TORONTO, ONTARIO -- (Marketwired) -- 09/08/14 -- CHC Realty Capital Corp. ("CHC" or the "Company") (TSX VENTURE: CHC) wishes to announce that it has determined to proceed with its previously announced student housing property acquisition in Trois-Rivieres, Quebec (310 beds in 78 student apartments in six building complexes having a purchase price of $5.5 million) and has removed its due diligence condition in respect of the acquisition. In addition, CHC has received the final acceptance of the TSX Venture Exchange ("TSXV") for its recently completed private placement of 68,390,693 subscription receipts for gross proceeds of $7,522,976. As a result, CHC has satisfied the escrow release conditions under the private placement and has provided notice of the same to the escrow agent and the subscription receipt agent for the subscription receipts and, as a result, the escrowed proceeds from the private placement have been released to CHC and the 68,390,693 subscription receipts issued under the placement have been automatically converted (for no additional consideration) into 68,390,693 common shares of CHC.
As previously disclosed, CHC intends to use the net proceeds of the private placement to complete its previously announced student housing property acquisitions in Windsor, Ontario (117 beds in 87 student apartments in two buildings having a purchase price of $5.9 million) and Trois-Rivieres, Quebec, and for general corporate purposes. CHC will require approximately $4.65 million of the proceeds from the financing for the acquisitions, not including transaction costs, with the balance of the purchase price for the properties being satisfied through mortgage financing.
CHC expects to complete the Windsor, Ontario acquisition on September 10, 2014, and to complete the Trois-Rivieres, Quebec acquisition on or about October 1, 2014.
The acquisitions remain subject to final acceptance from the TSXV.
The common shares which have been issued upon the conversion of the subscription receipts are subject to statutory resale restrictions expiring on December 19, 2014 in respect of common shares issued upon the exercise of subscription receipts acquired under the first closing of the private placement and December 29, 2014 in respect of common shares issued upon the exercise of subscription receipts acquired under the second closing of the private placement.
The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About CHC Realty Capital Corp.
CHC Realty Capital Corp. is an owner and operator of student housing properties which is focused on acquiring high quality properties in close proximity to universities and colleges in primary and well understood secondary markets in Canada.
The TSXV has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Mark Hansen, President and Chief Executive Officer
CHC Realty Capital Corp.
Telephone: (647) 288-9355
Email: mhansen@chcrealty.ca
Robert Waxman, Chief Financial Officer
CHC Realty Capital Corp.
Telephone: (647) 288-9375
Email: rwaxman@chcrealty.ca
