Toronto, Ontario--(Newsfile Corp. - February 5, 2020) - CHC Student Housing Corp. (TSXV: CHC) ("CHC" or the "Company") announces that it has closed the previously announced sale of its London property for total gross proceeds of $55.0 million.
As previously announced by the Company, with the closing of the sale of the London property, the Company has ceased to have active operations, no longer meets the continued listing requirements for the TSX Venture Exchange ("TSXV") and will be transferred to the NEX. The NEX is a separate board of the TSXV that provides a trading forum for listed companies that have fallen below the TSXV's continued listing requirements.
Before payment of transaction expenses but after payment of a $33 million first mortgage on the property and accrued and unpaid interest thereon, a prepayment penalty associated with the first mortgage, a $14 million second mortgage on the property and accrued and unpaid interest thereon, a balance of certain deferred interest on the second mortgage, a profit participation payment payable to the lender on the second mortgage, and standard real estate transaction adjustments for matters such as property taxes and rental adjustments, the Company received net proceeds from the sale of approximately $5.2 million.
As previously disclosed, the Company will use the net proceeds from the sale of the London property to settle its debts, in an amount of approximately $3.8 million, return capital to its shareholders in an amount to be determined, and seek out alternative business opportunities which could potentially result in additional value for shareholders. The Company will announce further details with respect to any of these matters as they develop.
Forward Looking Information
Certain statements contained in this news release may constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and other similar expressions. Forward-looking statements in this news release include statements regarding the expected sale of the Company's London property. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The forward-looking statements contained in this news release represent the Company's expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Simon Nyilassy, President and Chief Executive Officer
CHC Student Housing Corp.
Telephone: (416) 504-9380
Email:
Ron Schwarz, Chair
CHC Student Housing Corp.
Telephone: (416) 593-7085
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