Kingsway Arms Retirement Residences Inc.
TSX VENTURE : KWA

August 30, 2015 20:44 ET

Kingsway Arms Retirement Residences Inc. Closes Sale of Aurora Retirement Centre

TORONTO, ONTARIO--(Marketwired - Aug. 30, 2015) - Kingsway Arms Retirement Residences Inc. (TSX VENTURE:KWA) (the "Company" or "Kingsway") provides the following update regarding the sale of its retirement centre in Aurora, Ontario,

The Company announces that pursuant to the Agreement of Purchase and Sale (the "APS") entered into with an arm's length party, 2112691 Ontario Limited, it concluded the sale of the Company's retirement centre in Aurora, Ontario (the "Sale Transaction") which comprises substantially all of the assets of the Company. The Sale Transaction was concluded after the close of business on Friday, August 28, 2015. The Company filed a copy of the APS on SEDAR on July 22, 2015, and the APS and the Sale Transaction were described at greater length in the Company's management information circular dated June 22, 2015 for the annual and special meeting of shareholders of the Company held on July 23, 2015, as well as in its press release of July 3, 2015.

The purchase price in the Sale Transaction was $5.4 million and the Sale Transaction closed subject to a $30,000 holdback to be released to the Company on or before December 31, 2015, pending completion of several post-closing undertakings by the Company. From the proceeds received on the closing date, the Company has fully discharged the outstanding mortgage obligations on the Aurora property and has discharged all costs relating to the closing, including real estate agent fees and legal and accounting fees relating to the transaction.

The Company will now evaluate its options to optimize shareholder value. A special meeting of shareholders has been called for September 30, 2015.

Safe Harbor Statement:

This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include: our ability to identify or complete future transactions on acceptable terms; if at all. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. When used in this document, the words "believe," "expect," "anticipate," "estimate," "project," "plan," "should," "intend," "may," "will," "would," "potential," and similar expressions may be used to identify forward-looking statements.

This press release is not an offer of securities for sale in the United States. The securities of the Company referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended. Securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Kingsway Arms Retirement Residences Inc.
    Mr. Dan Amadori
    Chair, Board of Directors
    416-644-4361