HALIFAX, NS, Sept. 1, 2020 /CNW/ - ViveRE Communities Inc.
(TSXV: VCOM) ("ViveRE" or the "Company") announced today that
it has completed the acquisition of a 100% interest in a seven
property multi-unit residential portfolio (the "Portfolio", the
"Properties" or the "Acquisition") comprised of 128 units in
Moncton, New Brunswick. The
Properties are located at 145-155 McLaughlin Road. With this
acquisition ViveRE now owns 15 multi-unit residential properties
across the Maritimes and Ontario.
The Company also has another three multi-unit residential
properties, comprising 95 units, in Moncton under agreement for an aggregate
purchase price of $15.3 million,
which are separate and distinct from the acquisition of the
Properties.
Acquisition
ViveRE acquired the Properties for a purchase price of
$14.7 million, subject to customary
adjustments at closing. ViveRE has placed a collateral mortgage on
the Properties in the amount of $11,537,250 having an effective annual rate of
interest of 1.56% and a 25-year amortization period. In connection
with the Acquisition, the Company issued to the vendor 5,681,818
common shares of the Company at a price of $0.22 per share for total consideration of
$1.25 million, as well as 2.5 million
common share purchase warrants having an exercise price of
$0.27 per common share and a term of
three years. The balance of the purchase price was funded from the
proceeds of a $2.6 million
non-brokered private placement of convertible debentures as
detailed below.
Debenture Financing
ViveRE also announces that it has completed a non-brokered
private placement of secured convertible debentures ("Debentures")
for gross aggregate proceeds of $2.6 million. The Debentures have a par
value of $1,000 per Debenture, an
issue price of $950 per Debenture, an
annual interest rate of 7% payable semi-annually in cash, mature on
September 15, 2022 and are secured by
properties currently in the Company's portfolio. The Debentures
will be convertible at the holder's option into common shares of
ViveRE at a price of $0.24 per share.
If certain conditions are met the Debentures will be redeemable by
ViveRE at par value plus accrued interest commencing February 28, 2022.
Certain insiders of the Company subscribed for Debentures
resulting in gross aggregate proceeds of $868,000. The Company's material change report in
relation to the insider's participation in the Debenture offering
will not have been filed at least 21 days before the closing of the
offering as their participation was not known at that time. The
Debentures and any common shares issued thereunder are subject to a
statutory hold period lasting four months and one day following the
issued date of the Debentures.
About the Company
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 Naturally
Occurring Retirement Community or "NORC". 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. Screening properties identified to match
the criteria set out in the Company business plan (proximity to
healthcare, amenities, services and shopping), management has
identified a number of attractive targets for consideration by the
Board of the Company. The Company intends to acquire a further 500
units in the coming twelve months.
On behalf of the Board of Directors of ViveRE Communities
Inc.
"Mike Anaka"
Chief Executive Officer
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.
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 "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 future plans and
objectives of ViveRE Communities Inc, are forward-looking
statements that involve risks and uncertainties. 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.
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.
SOURCE ViveRE Communities Inc.