HALIFAX,
NS, Dec. 5, 2022 /CNW/ - (TSXV: NXLV)
– NexLiving Communities Inc. ("NexLiving" or the
"Company") announced today that it has entered into an agreement to
acquire a 100% interest in Northpoint Management Inc. from Sheaco
Holdings Inc. for $39.6 million.
Northpoint's key assets are two newly built multi-family buildings
comprising 75 units each located at 2251 Mountain Road and 2261
Mountain Road, Moncton NB. The
Company previously announced its agreement to acquire these
buildings on November 4, 2021, which
will now be acquired indirectly through its acquisition of
Northpoint Management Inc.
The purchase price, subject to customary adjustments, shall be
paid by the issuance of 37,500,000 common shares at a deemed issue
price of $0.20/share (valued at
$7.5 million), cash of $2.5 million and the proceeds from a $29.6 million CMHC insured mortgage. Subject
to due diligence, financing, performance conditions and TSX Venture
Exchange approval, the Company expects to close the transaction by
the end of the first fiscal quarter of 2023.
About the Company
NexLiving continues to execute its plans to acquire recently
built or refurbished, highly leased multi-residential properties in
bedroom communities in Atlantic
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,
quality and convenience has led to the emergence of the 55+ active
living segment. Apartments are their next "home", after years of
owning they look forward to the carefree lifestyle provided through
renting in a community of their peers. NexLiving intends to
consolidate this emerging market niche.
For its recently acquired properties in Ontario the Company plans to undertake a
targeted value-add capital program to modernize and reposition the
large 1- and 2-bedroom suites.
The Company currently owns 867 units in New Brunswick and Ontario.
NexLiving has also developed a robust pipeline of qualified
properties for potential acquisition. By screening the properties
identified to match the criteria set out by the Company (proximity
to healthcare, amenities, services and recreation), management has
assembled a significant pipeline of potential acquisitions. For
more information about NexLiving, please refer to our website at
www.nexliving.ca and our public disclosure at www.sedar.com.
Forward-Looking
Statements
This news release forward-looking information within the meaning
of applicable Canadian securities laws ("forward-looking
statements"). All statements other than statements of historical
fact are forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"projects", "estimates", "forecasts", "intends", "continues",
"anticipates", or "does not anticipate" or "believes" or variations
(including negative variations) of such words and phrases, or state
that certain actions, events or results "may", "could", "should",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements contained in this news release include,
but are not limited to management's expectations of additional
rental increases to come into effect by year end and the further
enhancement of the Company's financial results. Such
forward-looking statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
These forward-looking statements reflect the current expectations
of the Company's management regarding future events and operating
performance, but involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Actual events could differ
materially from those projected herein and depend on a number of
factors. These risks and uncertainties are more fully described in
regulatory filings, including the Company's Annual Information
Form, which can be obtained on SEDAR at www.sedar.com, under
NexLiving's profile, as well as under Risk Factors section of the
MD&A released on April 18, 2022.
Although forward-looking statements contained in this new release
are based upon what management believes are reasonable assumptions,
there can be no assurance that actual results will be consistent
with these forward-looking statements. Accordingly, readers should
not place undue reliance on forward-looking statements. The
forward-looking statements in this new release speak only as of the
date of this news release. Except as required by applicable
securities laws, the Company does not undertake, and specifically
disclaims, any obligation to update or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise, except as required by applicable
law.
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 press release.
SOURCE NexLiving Communities Inc.