NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
NEW GLASGOW, Nova Scotia, May 10, 2021 (GLOBE NEWSWIRE) -- Crombie Real Estate Investment Trust (“Crombie” or the “REIT”) (TSX: CRR.UN) announced today that it has entered into an agreement to sell, subject to regulatory approval and on a bought-deal basis, $58.5 million of trust units (the “Units”) at a price of $16.60 per Unit to a syndicate of underwriters co-led by Scotiabank and BMO Capital Markets. Closing is expected to occur on or about May 19, 2021, subject to receipt of the Toronto Stock Exchange and other necessary regulatory approvals. In addition, ECL Developments Limited (“ECL”), a wholly-owned subsidiary of Empire Company Limited, will purchase approximately $41.5 million of Class B LP Units of Crombie Limited Partnership and the associated special voting units of Crombie on a private placement basis on the same terms in satisfaction of its pre-emptive right with respect to the offering.
The REIT intends to use the net proceeds from both the offering and the concurrent purchase by ECL to repay outstanding indebtedness, to fund the REIT’s development pipeline and value-add capital programs, and for general trust purposes.
The Units issued under the offering will be offered pursuant to the REIT’s base shelf prospectus dated July 23, 2020. The terms of the offering will be described in a prospectus supplement to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada on or about May 12, 2021.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Crombie Real Estate Investment Trust invests in quality real estate that enhances local communities and is adaptable to long-term growth. As one of the country’s leading national retail property landlords, Crombie’s portfolio includes grocery-anchored retail, shopping centres, industrial, and mixed-use developments in Canada’s top urban and suburban markets. Crombie is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Learn more at www.crombiereit.com.
This news release contains forward looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as “continue”, "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements, and include statements regarding the expected use of proceeds of the offering and the ECL private placement and the expecting timing for closing the offering and the ECL private placement. These statements reflect current beliefs and are based on information currently available to management of Crombie. Forward looking statements necessarily involve known and unknown risks and uncertainties.
A number of factors, including those risks discussed under "Risks" in Crombie’s Annual Information Form for the year ended December 31, 2020, could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct.
For further information, please contact:
Clinton Keay, CPA, CA
Chief Financial Officer and Secretary