Business
Genesis Announces $35 Million Land Sale
Genesis Announces $35 Million Land Sale
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\nDec. 9, 2009 (Canada NewsWire Group) -- CALGARY, Dec. 9 /CNW/ -- Genesis Land Development Corp. (\"Genesis\" or the \"Corporation\") is pleased to announce that it has finalized the sales agreement for +/-147 acres of fully approved lands in North Calgary for $35 million. The sale transaction is subject to completion of a subdivision plan of the lands and providing a single certificate of title to the lands to the purchaser on the closing date of April 10, 2010 (the \"Closing Date\"). The purchaser has provided a deposit of $10 million to be held in trust and releasable to Genesis on the Closing Date. The remaining $25 million is due September 30, 2010. Genesis expects to recognize revenue for this sale in Q2-2010.Financings of $43.5 million---------------------------- On November 26, 2009, Genesis secured $28 million against+/-307 acres of fully approved lands in NW Calgary. Financing termsrequire Genesis to pay down $10,000,000 of the loan by April 30,2010, with the remainder due by November 26, 2010. Interest on thisfinancing is 12.25% per annum. The $35 million sale above will beused to retire this debt in 2010. Proceeds from this financing willbe used to pay down other debt and accounts payable.- Genesis has secured an additional $15.5 million of financing against+/- 164 acres of fully approved lands in NE Calgary (SaddletonLands). This financing at 8% with a deferred participating interestof 12% is structured to subordinate to future service financinganticipated in April 2010. Retirement of this loan is tied to thesales of lots in the Saddleton project and is expected to be fullyretired by mid 2011. Proceeds from this financing will be used toretire present debt and fill the need for present and future workingcapital.The combination of these two financings will greatly strengthen Genesis financial position in the immediate and midterm as the Company continues to reduce its debt and strengthen its balance sheet.Appointment of COO------------------The Company is also pleased to announce of appointment of Mr. Jeff Blair to the position of Chief Operating Officer. Mr. Blair has been with Genesis for over 10 years, most recently in the position of Manager of Acquisitions and Planning. Mr. Blair is a member of The Canadian Institute of Planners (MCIP) and holds a certificate in Environmental Management and a degree in Ec...