Edgefront Realty Corp. announces new property purchases and property closing

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 3, 2013 /CNW/ - Edgefront Realty Corp. (\"Edgefront\") (TSXV: ED) announces today that it has entered into two agreements,\n each dated May 3, 2013, with MM Sam Ltd. (an Ontario corporation) to\n purchase a 150,000 square foot industrial property in Cambridge,\n Ontario (the \"Cambridge Property\") and a 16,200 square foot retail property in Oakville, Ontario (the \"Oakville Property\", together with the Cambridge Property, the \"Properties\") for an aggregate purchase price of approximately $13,750,000, to be\n satisfied by a combination of $11,750,000 of cash, generated from new\n mortgages and the previously announced private placement of common\n shares at a price of $0.15 per share for aggregate gross proceeds of up\n to $45 million which will be sold on a best efforts basis through a\n syndicate of agents co-led by Desjardins Securities Inc. and Dundee\n Securities Ltd., and a share issuance to MM Sam Ltd. of $2,000,000 of\n Edgefront shares at a deemed price of $0.15 per share (approximately\n 13,333,333 Edgefront shares). The Cambridge Property is fully leased to\n a manufacturing company for a remaining term of 2.4 years. The Oakville\n Property consists of two prime located multi-tenant retail properties\n in Bronte Village with future potential development opportunity.\n\n\nThe acquisition of the Properties will form part of a series of\n transactions relating to the previously announced conversion of\n Edgefront into a real estate investment trust having an external asset\n management structure. Mario Forgione, the Chairman and a director of\n Edgefront, is the President and a director of MM Sam Ltd., which\n currently owns the Properties. As such the acquisition of the\n Properties will be non-Arm's Length Transactions and will be subject to\n Multilateral Instrument 61-101 and TSXV Policy 5.9, and will be subject\n to all necessary approvals, including the approval by the affirmative\n vote of a majority of votes cast by minority shareholders voting at a\n special meeting of shareholders to be held on June 14, 2013. Such\n transactions are expected to close on or about the end of June 2013.\n\n\nThe acquisition of the Properties has not yet received TSXV approval and\n is subject to certain closing conditions, including completion of\n satisfactory due diligence, receipt of any necessary sh...

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