CapGain Properties Inc.

CapGain Properties Inc.

April 25, 2013 13:48 ET

CapGain Properties Inc. Announces Financing Terms

LAKE IN THE HILLS, ILLINOIS--(Marketwired - April 25, 2013) - Further to the news release dated April 17, 2013, in which CapGain Properties Inc. (TSX VENTURE:CPP) announced that its wholly-owned subsidiary, CapGain Holdings Inc. ("CapGain"), had entered into a Financing Commitment with Statesman Financing Corp. ("Statesman"), this release shall specify the terms of said financing. The financing will allow CapGain to acquire a 30%, with an option to acquire as much as 80%, interest in Orlando MF Partners LLC, which will purchase the properties located at 1200 West Holden Avenue, Orlando, Florida and 4855 South Orange Blossom Trail, Orlando, Florida (the "Properties"), which are anticipated to be valued at $12,000,000 to $13,000,000, for $9,900,000.

The terms of the aforementioned financing are as follows: a $1,750,000 loan for a one year term that will accrue interest at the rate of 15% per annum for the first nine months of the loan term and at 20% for the last three months of the loan term. Additionally, a $150,000 commitment fee accompanies the loan. As referenced in the April 17, 2013 new release, CapGain Properties Inc. is to also issue 500,000 shares at market price to Statesman. CapGain intends to utilize the loan to purchase the Properties and then pay off the financing in three to four months with more conventional financing.

Dollar amounts referenced in association with the financing are in Canadian currency and dollar amounts referenced in association with the acquisition or purchase are in United States currency.

About CapGain

CapGain is an investment company that purchases, re-structures when applicable, and sells real property in the United States, with a forward moving focus on income producing real estate. CapGain's contacts within the real estate and finance industries allow the purchase of properties significantly below market value.

Additional information on the operations or financial results of CapGain is included in reports on file with applicable securities regulatory authorities and may be accessed through the TMX website ( and the SEDAR website ( under the profile for CapGain.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of applicable legislation. All statements included in this report and the documents that we incorporate by reference, are forward-looking statements and can generally be identified by words such as "will," "allow," "outlook," or the negative of these terms, and other comparable terminology.

Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements, such as whether CapGain is able to meet price, performance, quality and delivery requirements. Although CapGain believes that the expectations represented by any forward-looking statements and forward-looking information contained herein are reasonable based on the information available to them on the date of this document, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements or forward-looking information. CapGain undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.

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 release.

Contact Information

  • CapGain Properties Inc.
    Brian Knight
    Chief Executive Officer
    (847) 854-4213