Corporate Properties Limited

August 23, 2005 14:01 ET

Corporate Properties Limited Convertible Debt Agreement

TORONTO, ONTARIO--(CCNMatthews - Aug. 23, 2005) - The Board of Directors of Corporate Properties Limited (TSX VENTURE:CPR) (the " Company") is pleased to announce that it has finalized a new debt agreement to replace existing Company debt.

The company announced on July 8, 2005, an approval of a new debt agreement for the replacement of all existing short-term debt registered against the company. This agreement called for the replacement of the existing debt over a six-month period. The lenders and the Company were not able to finalize the agreement under the terms previously announced. Under the new terms negotiated and finalized, $2,500,000.00 of the existing debt were renewed and the term has been extended for two years. The portion of the existing debt renewed and extended are second and third ranking securities on Company properties. The interest rate for the new terms is 12% per annum payable interest only monthly. The debt will be convertible into Units at the rate one Unit per $1.10 of debt at the sole option of the lender for the entire term expiring no later than August 19, 2007. Each Unit is worth one common share and one common share purchase warrant. The common shares issued pursuant to the conversion and or from the warrant shall be free trading on or after December 20, 2005. Each common share purchase warrant entitles the holder to purchase one common share of the Company at the rate of $1.10 per share and the warrants can be exercised up to and including August 19, 2007. This agreement has received final acceptance by the Board of Directors and the TSX Venture Exchange.

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

Contact Information

  • Corporate Properties Limited
    Thomas Sheppard
    (416) 966-6885