Cagim Real Estate Corporation

Cagim Real Estate Corporation

May 25, 2006 13:44 ET

Cagim: Issuance of a First 30,0000 Common Shares with Regards to the Acquisition of a Commercial Land in the Approximate Amount of $1,150, 000.

QUEBEC, QUEBEC--(CCNMatthews - May 25, 2006) - The management of Cagim Real Estate Corporation (the "Corporation")(TSX VENTURE:CIM) is pleased to announce the issuance of 30,000 Class A common shares of the Corporation to Gaston Gagne inc. at a price of one dollars ($1,00) each as the first payment made in connection with the acquisition of a commercial land situated in Lebourgneuf district in Quebec city. The total acquisition price shall be an approximate amount of $1,150,000 plus applicable taxes, payable through the issuance of a total of 193,040 Class A common shares of the Corporation for a financial compensation amount of $193,040, the balance being payable in Canadian money. As of today, the Corporation intends to finance the first 25% of the project while the remaining 75 % shall be finance with a hypothec financing. The acquisition is part of the strategic expansion plan of the Corporation and is subject to some conditions.

Built on the same concept as of the Corporation's Place d'Affaires Lebourgneuf Project of which Mr. Guy Boutin, President of the Corporation declared to be satisfying, mainly as to its high rate of occupancy, the acquisition of the commercial land that shall be purchased pursuant to the offer shall be part of a new commercial project. Unless the Corporation fails to meets specific conditions, new occupants of this second project shall be welcomed as soon as March 2007.

Management of the Corporation is confident that the expertise of the management team of the Corporation shall contribute to the success of this new real estate project.

About Cagim

The Corporation is listed on the TSX Venture Exchange since September 21, 2004, and operates property management and acquisition activities. The Corporation operates its activities through its subsidiaries ADG Immobilier Inc., Edifice Centre d'Affaires Le Mesnil Inc., Place Donnacona Inc. and Place d'Affaires Lebourgneuf Inc.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacyy or accuracy of this release

Contact Information

  • Cagim Real Estate Corporation
    Guy Boutin
    President and Chief Executive Officer
    (418) 622-6644