On May 9, 2019, Choice Properties Real Investment Trust ("Choice Properties") announced that it has completed its public bought deal equity offering worth 30,042,250 trust units. It has closed these units at a rate of $13.15 per Unit for $395,000 worth aggregate gross proceeds.
This total offering comprises of 26,237,250 Units that have been bought as a syndicate of underwriters co-led by RBC Capital Markets, CIBC Capital Markets, BMO Capital Markets, and TD Securities Inc. Along with this, George Weston Limited, one of the largest unitholders of Choice Properties, bought 3,805,000 Units.
Choice Properties REIT is amongst the premium real-estate developers of Canada. As of now, Choice Properties holds ownership, management as well as Developer rights of 756 properties that total up to about 67.7 million square feet of area. One of the latest developments by Choice Properties located at 2280 Dundas St. W., 2280 Dundas condos is an elegant condominium project that talks of complete luxury. Given a stellar portfolio of the Developers, homebuyers are eyeing 2280 Dundas condos keenly which is expected to be completed by the year 2021.
The Offering that was made was under the Choice Properties short form base shelf prospectus. The prospectus was dated for January 9, 2018. However, the Offering terms have been explained in the prospectus supplemented that is dated for May 2, 2019. This prospectus was filed in each Canadian province with the security regulators.
Choice Properties will be using the net proceeds of the Offering to clear off its debts. This will, in turn, facilitate more borrowing capacity for the firm to provide funds required for its residential developments that have been announced by it previously. Also, the firm will be using this additional borrowing capacity to manage its other business expenses.
The Units that are a part of the Offering are not registered under the U.S. Securities Act of 1933, as amended. And, thus, these Units may not be offered or sold off in the US absent registration. The press release that shall be made will not include any offer for sale or solicitation of the offer to buy the Units. Also, there won’t be any sale permitted of these Units in any of the jurisdictions. Thus, any kind of solicitation or selling of the Units would not be permitted by the law and would be deemed as unlawful by the jurisdiction.
The press release, however, may contain certain forward-looking information that will be under the meaning of the applicable securities legislation. And, this forward-looking information is in consideration that is subjected to several uncertainties as well as risks. The issues mentioned in the Choice Properties' First Quarter 2019 Report that was sent to the Unitholders under its MD&A section are a part of these risks and uncertainties.
However, the risks aren't limited to just these issues. Choice Properties is not responsible for updating any of the forward-looking information. The forward-looking information statements that will be a part of any of the press releases that will be made will be for the date hereof. And, all shall be having cautionary statements in the end.
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