Highlights:
- Marwest Apartment REIT (the “REIT“) closes its previously announced qualifying transaction, indirectly acquiring two multi-family apartment properties totaling 251 multi-family units in Winnipeg, Manitoba.
- The REIT closes its previously announced brokered private placement of Class A trust units (“Trust Units“) conducted by its agent, Canaccord Genuity Corp. (the “Agent“) pursuant to which the REIT sold 1,000,000 Trust Units for gross proceeds of $1,000,000.
- The REIT intends to actively pursue additional acquisition opportunities.
- The Trust Units are anticipated to recommence trading on the TSX Venture Exchange on or about May 5, 2021.
WINNIPEG, MB, April 30, 2021 /CNW/ – Marwest Apartment Real Estate Investment Trust (“Marwest Apartment REIT” or the “REIT”) (TSXV: MAR.P) is pleased to announce today the closing of its previously announced qualifying transaction (the “Qualifying Transaction“) under TSXV Policy 2.4 – Capital Pool Companies and the identification of two potential acquisition opportunities.
Closing of Qualifying Transaction
Pursuant to the Qualifying Transaction, the REIT indirectly acquired entities owning 251 multi-family residential suites located in Winnipeg, Manitoba. At the annual and special meeting (the “Meeting“) held today, the holders (“Unitholders“) of Class A trust units (“Trust Units“) of the REIT passed all of the resolutions considered at the Meeting, including: (i) the re-election of the incumbent trustees
of the REIT; (ii) the re-appointment of the REIT’s auditors; (iii) the resolution approving the Qualifying Transaction by a “majority of the minority”; (iv) the resolution approving the equity incentive plan of the REIT by a majority of disinterested Unitholders; (v) the resolution approving the right of Marwest Asset Management Inc. (“Marwest“) to elect to receive REIT Units or securities exchangeable for REIT Units in satisfaction of certain fees and payments under its asset management and property management agreement by a majority of disinterested Unitholders; and (vi) the resolution approving amendments to the declaration of trust of the REIT, all as more particularly described in the management information circular of the REIT dated April 1, 2021.
Closing of Private Placement
In connection with the closing of the Qualifying Transaction, the REIT also completed its previously announced brokered private placement of Trust Units conducted by its agent Canaccord Genuity
Corp., pursuant to which the REIT issued 1,000,000 Trust Units at a price of $1.00 per Trust Unit for gross proceeds of $1,000,000. As a result, following the Qualifying Transaction there are an aggregate of 4,559,673 Trust Units and an aggregate of 9,812,063 Class B limited partnership units (“Exchangeable Units“) of MAR REIT L.P. Each Exchangeable Unit is exchangeable for one Trust Unit and is accompanied by a special voting unit of the REIT entitling the holder to receive notice of, attend at and vote at any meeting of voting securityholders of the REIT.
The REIT has requested final acceptance of the Qualifying Transaction by the TSXV and a request that the trading halt imposed on the Trust Units be lifted. The Trust Units are anticipated to recommence trading on the TSX Venture Exchange on or about May 5, 2021.
Acquisition Opportunities
The REIT also announced today that it intends to actively pursue additional acquisition opportunities, including a potential acquisition opportunity in northeast Winnipeg, Manitoba and another potential opportunity in southwest Winnipeg, Manitoba.