Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc.

April 01, 2010 17:00 ET

Amica Mature Lifestyles Announces Settlement of Bellevue Dispute and Acquisition of Additional 32.51% Ownership Interest in Amica at West Vancouver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2010) - Amica Mature Lifestyles Inc. ("Amica" or the "Company") (TSX:ACC)announced today the settlement of outstanding disputes relating to a development site in Bellevue, Washington.

As disclosed in its interim Consolidated Financial Statements, the Company had been seeking repayment of instalments in the total amount of US$5,625,000 (the "Deposit") paid towards the potential purchase of the development site and was concurrently defending a claim that it was obligated to provide a further US$6,875,000 to complete the acquisition of the site. The claims were being advanced in a confidential arbitration.

In accordance with the terms of the settlement, Amica has received a further 32.51% ownership interest in Amica at West Vancouver, bringing its ownership position in that facility to 45.19%. Amica at West Vancouver is a 121-suite community (including 9 luxury condominiums) that was completed in 2005, is currently operating at 92% occupancy and represents one of the premier luxury retirement residences in the Amica portfolio of Wellness & Vitality™ Residences. In addition to the increased ownership interest in Amica at West Vancouver, Amica also received a cash payment of CDN$650,000.

The settlement is comprehensive of both Amica's claim for the repayment of the Deposit and the claim advanced against it for payment of the balance due to complete the acquisition of the development site. As it represents a partial recovery of the Deposit, Amica will record an approximate $4.5 million write-down (before the recognition of any tax savings attributable to the loss) in its financial statements for the nine months ended February 28, 2010 (a one time, non-recurring, non-cash item).

Art Ayres, Chief Financial Officer at Amica, commented: "We are pleased to have settled this dispute, favourable to Amica, and to have the certainty and finality that comes with a settlement. Inherent in any legal dispute, no matter how meritorious, is uncertainty as to the outcome and as to the ability of the successful party to realize on a judgment. With this settlement behind us, we can move forward and focus all of our attention on business at hand. We are also very pleased with our increased ownership in Amica at West Vancouver. This is a very desirable asset in one of the most affluent residential markets in Canada. We believe it not only represents a solid investment but also has strong upside from both a cash flow and appreciation perspective."

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements").

These forward-looking statements are made as of the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as otherwise required by law. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to, statements concerning the Company recording an approximate $4.5 million write-down of the Deposit in its financial statements for the nine months ended February 28, 2010, the potential for tax savings attributable to the loss, anticipated future cash flow, the potential appreciation of property, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic conditions, actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could 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 the forward-looking statements. Known risk factors include, among others, risks related to dependence on the ability of Amica's co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; job actions including strikes and labour stoppages; possible liability under environmental laws and regulations, relating to removal or remediation of hazardous or toxic substances on properties owned or operated by Amica; risks associated with new developments, including cost overruns and start-up losses; the ability of seniors to pay for Amica's services; regulatory changes; risks inherent in the ownership of real property; operational risks inherent in owning and operating Residences; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; the availability of capital to finance growth or refinance debt as it comes due; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences, as well as those factors discussed in Amica's Annual Information Form dated August 18, 2009, filed with the Canadian Securities Administrators and available at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements, or the material factors or assumptions used to develop such forward looking statements, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements.

About Amica

Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design and development of luxury housing and services for mature lifestyles. There are 25 Amica Wellness & Vitality™ Residences, including two under development and three in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit

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