The Mandarin Golf and Country Club Inc.

The Mandarin Golf and Country Club Inc.

November 25, 2014 16:30 ET

The Mandarin Golf and Country Club Completes Sale of Its Property

TORONTO, ONTARIO--(Marketwired - Nov. 25, 2014) - The Mandarin Golf and Country Club Inc. (the "Company" or "Mandarin") announces that the Company has completed today its previously announced agreement of purchase and sale (the "Transaction") with an arm's length third party (the "Buyer") wherein the Buyer has purchased the property municipally known as 11207 Kennedy Road, in Markham Ontario for a purchase price ("Purchase Price") of CDN$22,000,000. One-half of the Purchase Price was paid in cash at closing and the other half is evidenced by a 7 year vendor take-back mortgage.

In connection with the Transaction, the Company has also entered into a ground lease ("Lease") with the Buyer which will enable Mandarin to continue to use the golf course and related facilities for a period of up to three years. In connection with same, Mandarin will be responsible to pay all costs associated with the operation of the property and related facilities over the term of the Lease.

The Transaction was approved by the shareholders of the Company at its annual and special meeting of shareholders held on November 7, 2013 (the "Special Meeting"). For more information, reference is made to the Company's management information circular dated October 17, 2013 filed on SEDAR (www.sedar.com). In connection with the Special Meeting, in addition to approving the sale and lease-back of the golf course, the shareholders of Mandarin also approved (i) the payment to each Class A shareholder of $3,000 per Class A share held as a return of capital and (ii) the ultimate dissolution of the Company once the Company has finished its lease back of the golf course property and the vendor take-back mortgage has been paid in full.

From the proceeds of closing, the Company has used, and will use, the funds to (i) discharge its indebtedness owing to Industrial and Commercial Bank of China (Canada), (ii) to pay out certain lease commitments owing on rental equipment, (iii) to pay certain tax and other arrears outstanding, (iv) to fund the return of capital to Class A shareholders and (v) to pay costs incurred in connection with the Transaction.

About Mandarin

Mandarin operates a championship 18 hole golf course and related facilities located on approximately 139 acres, in the Town of Markham, Province of Ontario. The shares of Mandarin continue to be subject to a cease trade order imposed by the Ontario Securities Commission on May 23, 2003.

Contact Information

  • The Mandarin Golf and Country Club Inc.
    11207 Kennedy Road
    Markham, ON L6C 1P2
    905-887-9887
    905-887-9807 (FAX)