January 25, 2017 07:00 ET
TORONTO, ONTARIO--(Marketwired - Jan. 25, 2017) - CHC Student Housing Corp. ("CHC" or the "Company") (TSX VENTURE:CHC) announced today that Dundee Acquisition Ltd. ("DAQ") has advised it and announced that, in connection with its proposed business combination with CHC and other properties, it has received redemption deposits of approximately 10.77 million Class A Restricted Voting Shares. The result is that, despite the funds committed to in DAQ's proposed private placement of up to $50 million in connection with the proposed business combination, the targeted minimum cash amount of $87.3 million required for DAQ to complete the transaction as its proposed qualifying acquisition under the special purpose acquisition corporation rules of the Toronto Stock Exchange will not be satisfied.
DAQ has advised that it intends to review its strategic alternatives, including working with CHC. CHC similarly intends to review its strategic alternatives, including working with DAQ. The arrangement agreement between CHC and DAQ in respect of the proposed transaction provides that DAQ and CHC will use reasonable commercial efforts to seek to obtain additional debt or equity or other financing sufficient to restore DAQ's and/or CHC's cash level to meet the minimum cash requirement, or make other appropriate arrangements to seek to complete the transaction (which may include, without limitation, issuing shares, or securities convertible or exchangeable therefor, or not completing one or more of the proposed acquisitions). In the meantime, DAQ currently intends to continue to hold its shareholders meeting, currently scheduled for January 27, 2017. Based on proxies received to date, DAQ shareholders would overwhelmingly vote in favour of the transaction.
No assurance can be given as to the results of the strategic reviews by CHC and DAQ. CHC will provide further details with respect to its strategic review and the proposed business combination with DAQ as soon as it is able to do so.
About CHC Student Housing Corp.
CHC Student Housing Corp. is Canada's only publicly traded company offering high-quality purpose-built student housing properties strategically located on campus or in close proximity to universities and colleges providing students a safe and secure living environment, affordable prices and high-quality amenities. CHC is focused on acquiring, developing and managing student housing in primary and well understood secondary markets in Canada.
Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
CHC Student Housing Corp.Mark HansenPresident and Chief Executive Officer(647) email@example.com
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