Madison Pacific Properties Inc.

March 19, 2010 18:47 ET

Madison Pacific Properties Inc. (TSX:MPC) Announces Equity Investment in Metro Vancouver Properties Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2010) - Madison Pacific Properties Inc. (TSX:MPC) ("Madison"), a Vancouver-based real estate company, announces that is has acquired approximately 94.1% of the equity of Metro Vancouver Properties Inc. (formerly MIGENIX Inc.) ("Metro Vancouver").

Under the transaction, Metro Vancouver received shareholder and regulatory approval to be restructured under a plan of arrangement (the "Arrangement") whereby a) all of the assets and liabilities of Metro Vancouver were transferred to a new company that will carry on the former biopharmaceutical business carried on by MIGENIX Inc., and b) Madison acquired 1,864,146 Class B Voting Common Shares ("Common Shares") and 43,674,049 Class C Non-Voting Shares ("Non-Voting Shares") of Metro Vancouver for $4.0 million. Madison and Metro Vancouver have no interest in the new biopharmaceutical company.

As a result of the transactions, Madison owns 1,864,146 Common Shares of Metro Vancouver, representing approximately 39.5% of the outstanding Common Shares and 43,674,049 Non-Voting Shares of Metro Vancouver, representing 100% of the outstanding Non-Voting Shares, all of which represents approximately 94.1% of the equity of Metro Vancouver.

Metro Vancouver will now focus on acquiring new business which may involve an investment in and the development of real estate properties or other businesses determined by the board.

Madison acquired the shares of Metro Vancouver for investment purposes. Management of Madison is of the view that the recapitalization of Metro Vancouver will increase Madison's flexibility to raise capital for its portfolio of real estate assets.

Forward Looking Statements
Certain statements in this press release are not historical and may constitute forward-looking statements reflecting financial performance. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Forward-looking statements are based on management's estimates, beliefs and opinions on the date the statements are made. Madison assumes no obligation to update forward-looking statements if circumstances should change. Additional information on these and other potential factors that could affect Madison's financial results are detailed in documents filed from time to time with the applicable Canadian securities regulatory authorities.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

Contact Information

  • Madison Pacific Properties Inc.
    Mr. Alan Firth
    (604) 732-6540
    Madison Pacific Properties Inc.
    Mr. Bill Ramsey
    Chief Financial Officer
    (604) 732-6540
    (604) 732-6550 (FAX)