Business
ISG Capital Corporation Announces Proposed Conversion to Real Estate Investment Trust
- Firm Capital to manage new diversified REIT - TORONTO, Aug. 30, 2012 /CNW/ - ISG C...
About this update from Firm Capital Property Trust
[{"type":"text","content":"\n\n\n\n\n\n- Firm Capital to manage new diversified REIT -\n\n\nTORONTO, Aug. 30, 2012 /CNW/ - ISG Capital Corporation (TSX-V: SUS) (\"ISG\") announced today that it has entered into an arrangement\n agreement with Firm Capital Property Trust (\"FCPT\") to effectively\n convert ISG into a new Real Estate Investment Trust (REIT) with members\n of the Firm Capital group of companies providing asset, property and\n executive management services.\n\n\n\"This transaction provides immediate liquidity for ISG shareholders who\n wish to crystallize the value of their investment in ISG.  It also\n provides an opportunity to participate in future growth of a new\n publicly traded REIT under the direction of Firm Capital's proven\n management team\", noted David Ogden, ISG's President and CEO.\n\n\nThis proposed conversion will be implemented by way of a Plan of\n Arrangement under the Canada Business Corporations Act and is subject to the approval of the TSX Venture Exchange (the\n \"TSXV\"), the Ontario Superior Court of Justice and ISG's shareholders\n as well as completion of the previously announced sale of ISG's sole\n real estate asset - the distribution facility located in Ingersoll,\n Ontario (the \"Ingersoll Facility\") and other customary closing\n conditions.\n\n\nDetails of the Transaction\n\n\nRedemption of ISG Common Shares\n\n\nPursuant to the Plan of Arrangement, holders of ISG common shares\n (\"Shares\") other than Firm Capital Mortgage Corporation (\"FCMC\"), an\n affiliate of FCPT, will have the option of redeeming their Shares for\n cash, exchanging them for units in FCPT or a combination of the two,\n provided that each Shareholder who owns a sufficient number of Shares\n to receive 100 FCPT units under the Plan of Arrangement will be\n required to exchange Shares for at least 100 FCPT units.\n\n\nThe cash redemption amount per Share will be determined based on ISG's\n cash on hand following completion of its sale of the Ingersoll Facility\n less deductions for (i) required payments under ISG's management\n incentive plan, (ii) the cost of purchasing a \"run-off\" directors' and\n officers' insurance policy and (iii) ISG's transaction costs, and less\n a further deduction of $0.005 per Share.  ISG currently anticipates\n that this will result in a cash redemption amount of approximately\n $0.175 per Share....