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Inovalis Real Estate Investment Trust Announces Closing of CDN$13.7 Million Private Placement
Inovalis Real Estate Investment Trust Announces Closing of CDN$13.7 Million Private Placem...
About this update from Inovalis Reit
[{"type":"text","content":"\n\n\n\nInovalis Real Estate Investment Trust Announces Closing of CDN$13.7 Million Private Placement\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, June 26, 2017\n\n\n\n/NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\n\n\nTORONTO, June 26, 2017 /CNW/ - Inovalis Real Estate Investment Trust (\"Inovalis REIT\" or \"REIT\") (TSX: INO.UN) today announced the closing of a CDN$13,717,407 private placement pursuant to the issuance of a Euro denominated promissory note by CanCorpEurope S.A. (a subsidiary of the REIT) to a single non-Canadian investor (the \"Investor\") for €9,146,178 (the \"Note\") paying interest at 8.18%, which amount represents the distribution yield paid on REIT units based on the five day weighted average closing price of the REIT units on June 9, 2017. The Note matures on June 22, 2020.\n\nConcurrent with the issuance of the Note, the Investor and the REIT entered into a put/call agreement pursuant to which the REIT can satisfy its obligation to the Investor by delivering REIT units at $10.08 per Unit (the \"Conversion Price\"). At any time after June 25, 2018 the Investor can transfer all or any portion of the Note to the REIT in consideration for REIT units based on the Conversion Price and the REIT can acquire the Note at any time by delivering REIT units to the Investor at the Conversion Price. The Conversion Price represents the market price of the REIT units based on the five day weighted average closing price on June 9, 2017.\n\nKhalil Hankach, Chief Investment Officer of Inovalis REIT commented: \"This is a significant financing transaction for the REIT as it evidences the REIT's ability to attract international capital on a less costly basis than a traditional private placement in Canada, which typically requires a 4%-6% discount to the market price. Pursuant to this transaction, the REIT will be paying an effective yield of 8.18% (based on the five day weighted average closing price of the REIT units on Ju...