/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
HALIFAX, NS, Dec. 4, 2020 /CNW Telbec/ - ViveRE
Communities Inc. (TSXV: VCOM) ("ViveRE" or the
"Company") is pleased to announce that due to strong
investor demand in connection with its previously announced best
efforts short form prospectus offering (the "Offering"), it
has entered into an agency agreement with Echelon Wealth Partners
Inc., as co-lead agent and sole bookrunner, Canaccord Genuity
Corp., as co-lead agent, and Laurentian Bank Securities Inc.
(collectively, the "Agents"), pursuant to which the Company
and the agents have agreed to upsize the Offering to up to a total
of 42,500,000 common shares ("Common Shares") at a price of
$0.20 per Common Share for aggregate
gross proceeds of up to $8,500,000.
The Company has also granted the Agents an option (the
"Over-Allotment Option"), exercisable in whole or in part at
the sole discretion of the Agents, any time not later than the 30th
day following the Closing Date (as defined below), to offer up to
an additional 15% common shares (the "Over-Allotment
Shares") at the offering price for additional gross proceeds of
up to $1,275,000, for the purpose of
covering over-allotments made in connection with the Offering and
for market stabilization purposes.
The Company also announces that it has today filed a final short
form prospectus in connection with the Offering (the
"Prospectus").
The gross proceeds of the Offering will be used to finance the
previously announced acquisition of three multi-family properties
in Moncton, New Brunswick, located
at 2380 Mountain Road (64 units), 27 Edmond Street (18 units) and
50 Maplewood Drive (13 units), and the multi-family property
located at 51 Noel Avenue in Saint John,
New Brunswick (42 units) (the "Acquisitions") with
the balance used for costs of future acquisitions, working capital
and general corporate purposes. The Company expects the
Acquisitions to close in December
2020.
The Offering and the Acquisitions are subject to TSX Venture
Exchange ("TSXV") final acceptance of requisite regulatory
filings. The closing of the Offering is anticipated to occur on
December 11, 2020 (the "Closing
Date") or such other date as the Company and the Agents may
agree.
The Company also wishes to clarify that the previously announced
annual dividend of 0.002 per Common Share, to be paid quarterly
commencing in the first quarter of 2021, shall be conditional upon
the closing of the Acquisitions (not conditional on the completion
of the Offering, as previously announced).
Further details of the Offering and the Acquisitions are
described in the Prospectus, filed with Canadian securities
regulators. A copy of the Prospectus is available under the
Company's profile on the SEDAR website at www.sedar.com.
The common shares subject to the Offering have not been and
will not be registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act") and may not be offered
or sold in the United States
absent registration under or an applicable exemption from the
registration requirements of the U.S. Securities Act. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy the shares herein described, and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of that
jurisdiction.
About ViveRE Communities Inc.
ViveRE continues to execute its plans to acquire recently built
or refurbished, highly leased multi-residential properties in
bedroom communities across Canada.
The Company aims to satisfy the needs of the newly emerging 55+
resident. The demographic that has changed the world is now
changing the way residential rental apartments cater to their
requirements. Their desire for community, along with service and
convenience amenities has led to the emergence of the 55+ active
living segment. Apartments are the next "home", after years of
owning they look forward to the carefree lifestyle provided through
renting in a community of their peers. ViveRE intends to
consolidate this emerging market niche. The Company currently owns
391 units in New Brunswick and
Ontario. ViveRE has also developed
a robust pipeline of qualified properties for potential
acquisition. By Screening the properties identified to match the
criteria set out in the Company business plan (proximity to
healthcare, amenities, services and shopping), management has
identified a significant pipeline of potential acquisitions for
consideration by the Board of the Company.
Forward-looking statements
This news release contains forward-looking statements
relating to the future operations of ViveRE and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "aims", "intends", "will", "may",
"should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the Acquisitions and the Offering, the size and pricing of the
Offering, receipt of requested TSXV and securities regulatory
approvals, and the future plans and objectives of ViveRE
Communities Inc, are forward-looking statements that involve risks
and uncertainties, and are necessarily based on a number of
assumptions that, while considered reasonable by management, are
inherently subject to business, market and economic risks,
uncertainties and contingencies that may cause actual results,
performance or achievements to be materially different from those
expressed or implied by forward-looking statements. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from ViveRE Communities Inc.'s
expectations include other risks detailed from time to time in the
filings made by ViveRE Communities Inc. with securities
regulators.
Forward-looking information in this news release includes
expectations relating to: ViveRE's ability to satisfy customary
closing conditions with respect to the Acquisitions; the pipeline
for future acquisitions which may be impacted by ViveRE's ability
to negotiate suitable terms, due diligence, access to capital and
market conditions; operating results which may be impacted by
unexpected vacancies and maintenance expenses; availability of
capital which may be impacted by the results of the offering,
capital market and borrowing conditions and the implementation of a
$0.002 per common share dividend
representing approximately a 10% payout ratio on expected 2021
AFFO.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of ViveRE Communities Inc. The reader
is cautioned not to place undue reliance on any forward-looking
information. 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. The
forward-looking statements contained in this news release are made
as of the date of this news release and ViveRE Communities Inc.
will only update or revise publicly the included forward-looking
statements as expressly required by Canadian securities
law.
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 press
release.
SOURCE ViveRE Communities Inc.
