/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, Aug. 8, 2019 /CNW/ - Firm Capital American Realty
Partners Corp. ("FCA" or the "Company"), (TSXV:
FCA.U), (TSXV: FCA) is pleased to announce that it has completed
its previously announced fully marketed offering (the
"Offering") of 18,078 convertible debenture units
("Convertible Debenture Units") at a price of $1,000 per Convertible Debenture Unit (the
"Offering Price"), including partial exercise of the
Over-Allotment Option (as herein defined), for aggregate gross
proceeds of $18,078,000.
Each Convertible Debenture Unit consists of $1,000 principal amount of unsecured subordinated
convertible debentures of the Company (each, a "Convertible
Debenture"), and 79 common share purchase warrants of the
Company (each, a "Warrant"). Each Warrant is exercisable to
acquire one common share of the Company for an exercise price of
$12.60 per share for a period of two
years following the closing date of the Offering.
CLOSING OF THE OFFERING
The Offering was completed by a syndicate of underwriters led by
Canaccord Genuity Corp. and including Echelon Wealth Partners Inc.,
Industrial Alliance Securities Inc., Raymond James Ltd., TD
Securities Inc., GMP Securities L.P., CIBC World Markets Inc., and
Laurentian Bank Securities Inc. (collectively, the
"Underwriters").
In connection with the Offering, the Company has also granted
the Underwriters an over‐allotment option (the
"Over‐Allotment Option") exercisable in whole
or in part, at the sole discretion of the Underwriters, for a
period of 30 days from the date hereof, to purchase up to an
additional 2,550 Convertible Debenture Units (the "Additional
Debenture Units") at the Offering Price, or up to 2,550
additional Convertible Debentures (the "Additional
Debentures") at a price of $942.33 per Additional Debenture, or up to
201,450 additional Warrants (the "Additional Warrants") at a
price of $0.73 per Additional
Warrant, or any combination of the foregoing, so long as the
aggregate number of Additional Debentures and Additional Warrants
issued under the Over‐Allotment Option does not exceed 2,550
Additional Debentures and 201,450 Additional Warrants.
As of the date hereof and pursuant to the Over-Allotment Option,
the Underwriters have purchased 1,078 of the Additional Debenture
Units for gross proceeds of $1,078,000. If the remaining Over‐Allotment
Option of 1,472 Additional Debenture Units is exercised in full, an
additional $1,472,000 in gross
proceeds will be raised pursuant to the Offering and the aggregate
gross proceeds of the Offering to the Company will be $19,550,000.
The net proceeds of the Offering will be used by the Company to
fund prospective acquisitions of income producing multi-family
residential properties in the United
States primarily by way of joint venture partnerships, to
fund prospective investments in mortgage debt on real estate
properties in the United States,
for the repayment of debt, for working capital and for general
corporate purposes.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm Capital American Realty Partners Corp. is a U.S. focused
real estate investment entity that pursues real estate and debt
investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Company or in joint-venture partnership
with local industry expert partners who retain property management
responsibilities; and
- Mortgage Debt Investments: Real estate debt and equity
lending platform in major cities across the United States, focused on providing all
forms of bridge mortgage loans and joint venture capital.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", and by discussions of strategies that involve risks and
uncertainties, including statements regarding: the use of proceeds
of the Offering; and whether the Over-Allotment Option will be
further exercised by the Underwriters in connection with the
Offering. The forward-looking statements are based on certain key
expectations and assumptions made by the Company. By their nature,
forward-looking statements involve numerous assumptions, inherent
risks and uncertainties, both general and specific, that contribute
to the possibility that the predictions, forecasts, projections and
various future events will not occur. Although management of the
Company believes that the expectations reflected in the
forward-looking statements are reasonable, there can be no
assurance that future results, levels of activity, performance or
achievements will occur as anticipated. Neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of any forward-looking statements, and no one has any
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or such other
factors which affect this information, except as required by law.
Closing of the Offering remain subject to the final approval of the
TSX Venture Exchange.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, which may be made only by means of
a prospectus, nor shall there be any sale of the Units in any
state, province or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under securities laws of any such state, province or
other jurisdiction. The Units have not been, and will not be
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered, sold or delivered in the United States absent registration or an
application for exemption from the registration requirements of
U.S. securities laws.
Neither the TSX Venture 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.
SOURCE Firm Capital American Realty Partners Corp.