Carlton Trail Limited Partnership

September 09, 2005 15:44 ET

Carlton Trail Limited Partnership Makes Loan to Westcan Income (2) Ltd.

CALGARY, ALBERTA--(CCNMatthews - Sept. 9, 2005) - Carlton Trail Properties Ltd., the General Partner of Carlton Trail Limited Partnership (TSX VENTURE:CTP.UN.A), announced today on behalf of Carlton Trail Limited Partnership that the Limited Partnership has loaned $1,975,000 to Westcan Income (2) Ltd. on a demand basis at an interest at Royal Bank of Canada's Prime Commercial Lending Rate, as established from time to time, plus FIVE (5%) PERCENT PER ANNUM. The loan proceeds will be used by Westcan Income Limited Partnership II to close a real estate acquisition transaction. The loan is expected to be outstanding for less than 90 days and will be repaid out of the proceeds of a financing by Westcan Income Limited Partnership II which is anticipated to close within the 90 day period.

The loan transaction may be a related party transaction within the meaning of National Policy 61-501 (which is applicable to Carlton Trail Limited Partnership by virtue of its listing on the TSX Venture Exchange); however, there is no requirement for a formal valuation or minority shareholder approval of the transaction because the Board of Directors of Carlton Trail unanimously determined that the amount of the loan does not exceed 25% of Carlton Trail Limited Partnership's market capitalization, including the Class A common units (listed on the TSX Venture Exchange), the unlisted 6% Class B preferred units and the unlisted 11% Class C preferred units. The material change report to be filed in respect of this loan is being filed less than 21 days prior to the making of such loan due to the commercial necessity to complete the loan as of the date hereof.

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

Contact Information

  • Carlton Trail Properties Ltd
    Henry Bustard
    (403) 250-6688
    #1 1715 - 27th Ave NE
    Calgary Alberta T2E 7E1