The Griffin Corporation
TSX VENTURE : GRN

The Griffin Corporation

September 19, 2005 14:26 ET

Griffin Corporation in Negotiations to Increase Asset Base

KITCHENER, ONTARIO--(CCNMatthews - Sept. 19, 2005) - The Board of Directors of the Griffin Corporation (TSX VENTURE:GRN) today announced that the company has entered into negotiations that, once completed, will substantially increase Griffin's asset base.

The transactions under negotiation involve acquiring the remaining 50% interest in the 101 Mall in Timmins, Ontario that Griffin does not already own, thus giving Griffin 100% ownership of that property. The company will also purchase a 100% interest in an office tower in Sudbury, Ontario. The company's Huron Market Place in London, Ontario will be sold.

Upon completion, these transactions will effectively increase Griffin's asset base by $6.0 million. Mortgage debt, for the Sudbury and Timmins properties, will increase by $4.0 million. An outstanding debenture of $500,000, preferred shares valued at $500,000 and a second mortgage of $250,000, on the Sir William Osler Medical Building in Hamilton, Ontario, will be discharged. Griffin's commercial real estate portfolio will essentially double and its balance sheet will be substantially strengthened.

These pending transactions are non-arms length. The office tower in Sudbury is owned by Vista Sudbury Complex Inc., while the outstanding interest in the 101 Mall in Timmins is currently owned by Zayma Realty Ltd., which owns 4,220,241 shares of Griffin. Both Zayma Realty Ltd. and Vista Sudbury Complex Inc. are owned and controlled by the family of Amin S. Visram, who is the CEO of Griffin.

As these are non-arms length transactions, they are subject to specific regulatory approvals, as well as being subject to shareholder approval. A special shareholders' meeting will be held as soon as possible where the required voting will take place.

The Sudbury office tower has been independently valued at $3.9 million. Under the current proposed negotiations, it will be purchased by Griffin for $3.7 million. The 101 Mall has been independently valued at $5.4 million; it is proposed that Griffin purchase the outstanding 50% for $2.7 million. The Huron Market Place, which was purchased in 2003 for $1.05 million, will be sold for $3.2 million in cash.

ABOUT GRIFFIN

Founded in 1998, The Griffin Corporation (TSX Venture Exchange: GRN) is a Canadian-based real estate investment company that presently owns income producing commercial real estate in Hamilton, Kitchener, London and Timmins, Ontario including a 100% interest in "The Sir William Osler Medical Center" at 565 Sanatorium Road in Hamilton; a 100% interest in 1251 Huron Street, 'Huron Market Place' in London; a 100% interest in 73 King Street, Kitchener; and a 50% interest in "The 101 Mall" at 38 Pine Street in Timmins.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No Securities Commission or other regulatory authority having jurisdiction over Griffin has approved or disapproved of the information contained herein.

For more information about the Griffin Corporation, please visit the company's website at www.griffincorporation.com.

Certain information included in this press release is forward-looking and may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with the Griffin Corporation's growth, the development of the commercial real estate market, regulatory risks, and other factors. Unless otherwise required by applicable securities laws, the Griffin Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about potential factors that could affect the Griffin Corporation's financial and business results is included in public documents Griffin files from time to time with Canadian securities regulatory authorities.

Contact Information

  • Executive Office
    The Griffin Corporation
    73 King Street, 2nd Floor, Kitchener, ON
    (519) 744-4400
    (519) 744-5500 (FAX)
    www.griffincorporation.com