Resideo Properties Inc.

September 22, 2015 16:06 ET

Resideo Properties Inc. Announces Closing of First Tranche of Equity Financing

TORONTO, ONTARIO--(Marketwired - Sept. 22, 2015) - Resideo Properties Inc. ("Resideo" or the Company") is pleased to announce the closing of the first tranche of its private placement financing of common shares of the Company led by Euro Pacific Canada Inc. ("EPC").

The common shares were issued pursuant to an escrow agreement (the "Escrow Agreement") and have been placed in escrow pending the satisfaction of the escrow release conditions set out in the Escrow Agreement (the "Escrow Release Conditions"). The Escrow Release Conditions include, but are not limited to, the receipt of a Tax Opinion for Canadian investors to be rendered by Collins, Barrow LLP, on behalf of Resideo and entering into a Definitive Merger Agreement between Resideo and Telferscot Resources Inc. (CSE:TFS). Upon satisfaction of the Escrow Release Conditions, the escrowed funds will be released to Resideo. The Company will use such funds towards the acquisition of an initial portfolio of multi-residential and single-family properties located in Detroit, Michigan ("Initial Portfolio"), comprised of 95 living units.

The Company is currently in discussions with the vendors of the Initial Portfolio to identify the first properties to be acquired under an LOI between the parties. Resideo has also entered into discussions with a Detroit based US chartered bank for the provision of first mortgage financing on a 50% loan to value basis.

The second tranche of the financing is expected to close on or about September 30, 2015.

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