Delavaco Properties Inc.

April 24, 2012 16:31 ET

Delavaco Properties Announces US$22.5 Million Bought Deal Unit Offering

FORT LAUDERDALE, FLORIDA and TORONTO, ONTARIO--(Marketwire - April 24, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Mr. Andrew DeFrancesco, Chairman & CEO of Delavaco Properties Inc. is pleased to announce that the Company has entered into an agreement with a syndicate of underwriters to purchase its offering of 7.5% Secured Notes and Common Share Purchase Warrants (collectively the "Units") due June 30, 2016 at a price of US$1,000 per Unit for total gross proceeds of US$22,500,000.

Each Unit will consist of one US$1,000 principal amount secured note and 154 common share purchase warrants. Each common share purchase warrant entitles the holder to acquire one common share in the capital of the Company at a price of C$1.30 at any time within five years of the closing of the offering.

The Company has granted the underwriters an over-allotment option to purchase up to an additional 2,500 Units at a price of US$1,000 which, if fully exercised, would bring the total gross proceeds of the offering to US$25,000,000.

The offering was underwritten by a syndicate of investment dealers comprised of GMP Securities L.P. as co-lead manager and sole bookrunner, Canaccord Genuity Inc. as co-lead manager and Clarus Securities Inc. In addition, PowerOne Capital Markets Limited will act as an advisor to the Company.

The net proceeds from the offering will be used by Delavaco Properties primarily to acquire additional distressed residential properties in South Florida, to redeem its July 2011 10% debentures and for general working capital purposes.

The offering is scheduled to close on or before June 1, 2012.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Delavaco Properties Inc.

Delavaco Properties is a real estate investment firm specializing in the acquisition and subsequent leasing of distressed residential real estate in the state of Florida. The Company currently holds a portfolio of 327 residential properties in South Florida.

Delavaco Properties was founded and is currently managed by Dallas Wharton and the principals of Delavaco Capital, a private equity firm headquartered in Fort Lauderdale, Florida with offices in Toronto, Canada and Bogota, Colombia.

Contact Information

  • Delavaco Properties Inc.
    Andrew DeFrancesco
    Chief Executive Officer
    2300 E. Las Olas Blvd.
    Fort Lauderdale, FL 33301
    (954) 779-1930