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Canna 8 Investment Trust Announces Proposed Qualifying Transaction with Real Industrial Investment Trust
Toronto, Ontario--(Newsfile Corp. - April 17, 2020) - Toronto, Ontario - April 17, 2020 - C...
About this update from Canna 8 Investment Trust
[{"type":"text","content":"Canna 8 Investment Trust Announces Proposed Qualifying Transaction with Real Industrial Investment TrustToronto, Ontario--(Newsfile Corp. - April 17, 2020) - Toronto, Ontario - April 17, 2020 - Canna 8 Investment Trust (TSXV: RCR.P) (\"Canna 8\") is pleased to announce that it has entered into a letter of intent (the \"Letter of Intent\") dated April 2, 2020 with Real Industrial Investment Trust (\"Real Industrial\"), a trust formed pursuant to the laws of the Province of Ontario, whereby Canna 8 and Real Industrial will complete an arrangement, merger, unit exchange or similar transaction to ultimately form the resulting issuer (the \"Resulting Issuer\") that will continue on the business of Real Industrial (the \"Proposed Transaction\"). Subject to TSX Venture Exchange (the \"TSXV\") approval, it is intended that the Proposed Transaction will constitute Canna 8's \"Qualifying Transaction\" under Policy 2.4 - Capital Pool Companies (\"Policy 2.4\") of the TSXV and that the Resulting Issuer will be listed as a Tier 1 Real Estate Issuer on the TSXV. It is anticipated that the Proposed Transaction will not be considered a Non-Arm's Length Qualifying Transaction (as that term is defined in Policy 2.4). No finder's fee is payable on respect of the Proposed Transaction. Certain trustees of Canna 8 hold, directly or indirectly, the following percentages of the issued and outstanding units of Real Industrial: (i) Dean Parmar: 6.2%; (ii) Gopi Pillai: 6.2%; (iii) Nebojsa Dobrijevic: 3.1%; and (iv) Sundeep Cheema: 3.1%. The Letter of Intent provides that Canna 8 and Real Industrial will work together to negotiate and enter into a definitive agreement in respect of the Proposed Transaction (the \"Definitive Agreement\"). If and when entered into, the Definitive Agreement will supersede the Letter of Intent. The final structure of the Proposed Transaction is subject to receipt of tax, corporate and securities law advice for both Canna 8 and Real Industrial. Real Industrial is a party to an agreement pursuant to which it has the right to purchase certain real property located in Kirkland, Ontario (the \"Kirkland Property\") with an approximate value of $8.3 million. Real Industrial intends to acquire the Kirkland Property for the purpose of leasing it. The Kirkland Property has a valid commercial lease in place that expires in 2029. The acqu...