Firm Capital Apartment REIT Announces First Draw Down Under Up to CAD$13 Million Bridge Loan
22 April 2022 - 7:00AM
Firm Capital Apartment REIT (the “
Trust”), (TSXV:
FCA.U), (TSXV: FCA) is pleased to announce that it has
completed the first draw down on its previously disclosed CAD$13
million Bridge Loan (the “
Bridge Loan”) (see press
release dated April 18, 2022 for a description of the terms).
The initial draw down was in the amount of CAD$5
million. The borrower under the Bridge Loan is FCARP Limited
Partnership, a wholly owned subsidiary of the Trust. The Bridge
Loan was provided by a related party of the Trust, and thereafter
transferred to, among others, certain trustees of the Trust (who
will together have a total potential commitment of CAD$4.65 million
of the total CAD$13 million), As noted in the April 18, 2022 press
release, the Trust has agreed to guarantee the payment and
performance of the Bridge Loan. As such, the provision of the
Bridge Loan and the guarantee by the Trust constitutes a "related
party transaction" as defined in Multilateral Instrument 61-101 –
Protection of Minority Securityholders in Special Transactions
("MI 61-101"), but is exempt from the valuation
requirement and the minority approval requirement pursuant to
subsections 5.5(a) and 5.7(a) of MI 61-101, respectively, as the
value of the Bridge Loan and associated guarantee does not
represent more than 25% of the Trust's market capitalization, as
determined in accordance with MI 61-101.
The Bridge Loan and guarantee provided by the
Trust in connection therewith was approved by the trustees of the
Trust who were independent in respect of the transactions. The
material change report in respect of the transaction will be filed
less than 21 days before the closing of the transaction as the
Trust would like to proceed with the transaction in a timely
manner.
ABOUT FIRM CAPITAL APARTMENT REAL ESTATE
INVESTMENT TRUST Firm Capital Apartment Real Estate
Investment Trust is a U.S. focused real estate investment trust
that pursues multi-residential income producing real estate and
related debt investments on both a wholly owned and joint venture
basis. The Trust has ownership interests in a total of 1,846
apartment units diversely located in Florida, Connecticut, Texas,
New York, New Jersey, Georgia and Maryland.
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 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. Additional risk
factors that may impact the Trust or cause actual results and
performance to differ from the forward looking statements contained
herein are set forth in the Trust's Annual Information Form under
the heading Risk Factors (a copy of which can be obtained under the
Trust's profile on 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. Except as
required by applicable law, the Trust undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
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: |
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Sandy PoklarPresident & Chief Executive Officer(416)
635-0221 |
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Mark Goldreich Chief Financial Officer (416) 635-0221 |
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For Investor Relations information, please contact: |
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Victoria Moayedi Director, Investor Relations (416) 635-0221 |
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