CHC Realty Capital Corp

November 28, 2013 14:40 ET

CHC Realty Capital Corp. Completes Capital Pool Company Initial Public Offering

TORONTO, ONTARIO--(Marketwired - Nov. 28, 2013) - CHC Realty Capital Corp. ("CHC" or the "Corporation"), a capital pool company, is pleased to announce that it has completed its initial public offering ("IPO") by issuing 10,000,000 common shares at a price of $0.10 per common share for gross proceeds to the Corporation of $1,000,000. As a result of this issuance, the Corporation has 55,000,000 common shares issued and outstanding.

The net proceeds of the IPO, together with the proceeds from prior sales of common shares, will be used by the Corporation to identify and evaluate assets or businesses for acquisition with a view to completing a "Qualifying Transaction" under the capital pool company program of the TSX Venture Exchange (the "TSX-V"). The Corporation currently intends to pursue a Qualifying Transaction through the acquisition of real property, and in particular student housing, and reorganization into a real estate investment trust by way of a plan of arrangement.

It is anticipated that the common shares of the Corporation will commence trading on the TSX-V under the stock symbol "CHC.P" shortly at market open on the second business day following receipt of the TSX-V's Final Exchange Bulletin, subject to final listing approval of the TSX-V.

Raymond James Ltd. (the "Agent") acted as agent in respect of the IPO. In connection with the IPO, the Corporation granted to the Agent non-transferable options to acquire up to an aggregate of 1,000,000 common shares of the Corporation for a period of two years from the date of listing at an exercise price of $0.10 per common share. The Agent was also paid a corporate finance fee and a cash commission of 10% of the gross proceeds of the IPO.

Following the closing of the IPO, the Corporation granted stock options to the directors and officers of the Corporation exercisable to acquire up to an aggregate of 4,125,000 common shares of the Corporation. Each option is exercisable to acquire one common share at a price of $0.10 per common share until November 28, 2018.

For further information with respect to the Corporation and the IPO, please see the (final) prospectus of CHC dated November 19, 2013 filed on SEDAR under the profile of the Corporation.

This news release includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • CHC Realty Capital Corp.
    Robert Waxman
    Chief Financial Officer
    (416) 947-7084