C2C Industrial Properties Inc.

June 26, 2012 17:27 ET

C2C Industrial Properties Inc. Announces $22 Million Equity Private Placement to Pursue Growth Strategy and Increase Liquidity

TORONTO, ONTARIO--(Marketwire - June 26, 2012) -


C2C Industrial Properties Inc. (the "Company" or "C2C") (TSX VENTURE:CCH), announce today that it proposes to issue up to 4,835,200 common shares of the Company at a price of $4.55 per common share for gross proceeds of up to $22,000,160 (the "Offering"). The Offering is conditional on exchange approval, with closing of such Offering anticipated to occur on or about July 17th, 2012. The net proceeds of the Offering will be used to repay certain short-term indebtedness incurred in connection with C2C's recently previously announced accretive acquisition of a portfolio of 7 multi tenant industrial properties located in Montreal, Mississauga and Edmonton. Any excess proceeds will be used to fund future acquisitions and for general working capital purposes. The Offering is being co-led by GMP Securities Inc. and Desjardins Capital Markets Inc.

Subsequent to closing of the Offering, the Company will have approximately 17.1 million common shares outstanding. This acquisition will increase the number of properties from 14 to 21 and increase the total GLA from 1.4 million to approximately 2 million square feet. In addition to assisting C2C in its mandate to be a leading consolidator of industrial properties across Canada, the Offering should enhance the trading liquidity of C2C's common shares.

"With the closing of the proposed accretive acquisition, we will have established a meaningful platform in four key industrial markets across Canada. Furthermore, the clustering of the properties in each market provides a diverse tenant base and allows C2C to implement and execute its previously stated value-add strategy for our portfolio," stated Chris Ross, President of the Company. "Over the past 12 months, we have grown the portfolio while maintaining a conservative pay-out ratio. In addition, our low pay-out ratio will provide us with the financial flexibility to take advantage of value add opportunities that offer the ability to increase both Net Asset Value per share and Adjusted Funds from Operations per share."

The securities to be issued by C2C have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

The securities to be issued by C2C will be subject to a 4 month hold period under applicable Canadian securities laws.

About C2C Industrial Properties Inc.

C2C is a real estate investment corporation specializing in the acquisition, ownership and operation of industrial properties across Canada. Upon completion of the proposed portfolio acquisition, C2C will own twenty-one industrial properties totalling approximately 2 million square feet. More information about C2C (TSX VENTURE:CCH) is available at www.sedar.com.

Forward Looking Statements

This document contains forward-looking statements relating to C2C and the industry in which it operates and its strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond C2C's control. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this press release. C2C is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors, unless otherwise required to do so by applicable law. All forward-looking statements attributable to C2C are expressly qualified by these cautionary statements.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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.

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