pcNewsWire – Firm Capital American Realty Partners Corp. (TSX-V: FCA, FCA.U) has completed previously announced bought deal of 850,160 units at US $7.50 per unit for approximately US $6.3 million. Canaccord Genuity Corp. acted as the underwriter of the offering.
Proceeds will be used to fund prospective investments in income producing real estate properties in the U.S. primarily in joint-venture partnerships, to fund prospective investments in bridge mortgage debt on U.S. real estate properties, for the repayment of debt, for working capital, and for general corporate purposes.
TSXV Symbol: FCA.U
FIRM CAPITAL AMERICAN REALTY PARTNERS CORP. ANNOUNCES CLOSING OF PUBLIC OFFERING OF COMMON SHARES AND WARRANTS
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
May 29, 2017, TORONTO – Firm Capital American Realty Partners Corp. (the “Corporation”) (TSXV: FCA / FCA.U) is pleased to announce the closing of the public offering (the “Offering”) of 850,160 units (the “Offered Units”) of the Corporation (which includes Offered Units issued pursuant to the partial exercise of the over-allotment option), as previously announced in the Corporation’s press release dated May 10, 2017.
The Corporation completed the Offering at a price of U.S.$7.50 per Offered Unit (C$10.24 per Offered Unit based on the Bank of Canada daily noon rate of exchange of 1.36535 as of May 10, 2017). Each Offered Unit consisted of one common share of the Corporation and one common share purchase warrant of the Corporation (an “Offered Warrant”). Each Offered Warrant will entitle the holder to purchase one common share of the Corporation at an exercise price of U.S.$8.50 for a period of 36 months from the closing date of the Offering. Canaccord Genuity Corp. acted as the underwriter of the Offering. The Corporation raised gross proceeds of approximately U.S.$6.3 million pursuant to the Offering.
In connection with the Offering, investors had the option of subscribing for the Offering in U.S. dollars or Canadian dollars. The TSX Venture Exchange (the “TSXV”) has conditionally approved the listing of the common shares issued under the Offering for trading in Canadian dollars under the symbol “FCA”, alongside the Corporation’s existing common shares that trade in U.S. dollars under the symbol “FCA.U”. The TSXV has also approved the listing of the Offered Warrants for trading in U.S. dollars under the symbol “FCA.WT.U”. The Offering remains subject to the final approval of the TSXV.
The net proceeds of the Offering will be used by the Corporation to fund prospective investments in income producing real estate properties in the U.S. primarily in joint-venture partnerships, to fund prospective investments in bridge mortgage debt on U.S. real estate properties, for the repayment of debt, for working capital, and for general corporate purposes.
The Corporation intends to adopt a dividend policy, which is anticipated to be effective 90 days after the closing of the Offering, pursuant to which it will pay U.S. dollar cash dividends (on both the U.S. dollar and Canadian dollar common shares) to shareholders of the Corporation as of each quarterly dividend record date, targeted to be the last day of each calendar quarter. The common shares of the Corporation are expected to provide an initial cash-on-cash yield of 3.0%. These intentions with respect to the anticipated dividend policy are subject to the risks, factors and assumptions set forth in the (final) short form prospectus of the Corporation dated May 19, 2017, under the heading “Dividend Policy” and “Risk Factors”.
About the Corporation
Currently, the Corporation is focused on the following investment platforms:
Income Producing Real Estate Investments: Acquiring income producing real estate assets in major cities across the United States. Acquisitions are completed by the Corporation primarily in joint venture partnerships with local industry expert partners who retain property management responsibility; and
Mortgage Debt Investments: Real estate debt and equity lending platform in major cities across the United States, focusing on providing all forms of bridge mortgage loans and joint venture capital.
For further information, please contact:
President & Chief Executive Officer
Chief Financial Officer
SOURCE: Firm Capital American Realty Partners Corp.