Business
PROREIT completes underwritten equity offering
/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS...
About this update from Pro Real Estate Investment Trust
[{"type":"text","content":"\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH\n UNITED STATES NEWS OR WIRE SERVICES./\n\n\nMONTRÉAL, Nov. 26, 2013 /CNW/ - PRO Real Estate Investment Trust (\"PROREIT\" or the \"REIT\") (TSXV: PRV.UN) announced today that it has completed its previously\n announced public offering of 4.6 million trust units (the \"Units\") at a price of $2.40 per unit (the \"Offering Price\") for total gross proceeds of approximately $11.1 million (the \"Offering\"). As previously announced, the REIT also intends to issue an\n additional $5.8 million of equity to certain property vendors, for a\n total of $16.9 million of new equity (or up to $18.6 million if an\n over-allotment option is exercised as more fully described below).\n\n\nClosing of the Offering\n\n\nThe Offering was completed by a syndicate of underwriters led by\n Canaccord Genuity Corp. and including TD Securities Inc., Scotia\n Capital Inc., National Bank Financial Inc., Desjardins Securities Inc.,\n GMP Securities L.P., and Dundee Securities Ltd. (collectively, the \"Underwriters\").\n\n\nThe estimated net proceeds to the REIT from the Offering, after\n deducting the Underwriters' fee of approximately $0.6 million, but\n before deducting the expenses of the Offering, were $10.5 million. The\n REIT has also granted the Underwriters an over-allotment option\n exercisable, in whole or in part, to purchase up to an additional 693,362 Units at a price of $2.40 per unit (for additional aggregate\n gross proceeds to the REIT of $1.7 million if the over-allotment option\n is exercised in full) for a period of 30 days from the closing date of\n the Offering, to cover over-allotments, if any, and for market\n stabilization purposes.\n\n\nThe net proceeds from the Offering are expected to be used by the REIT,\n along with the issuance of Class B limited partnership units of PRO\n REIT Limited Partnership to certain property vendors (\"Class B LP Units\"), cash on hand, an assumed mortgage, a new mortgage, and a revolving\n credit facility to be established, to fund the purchase of four\n commercial properties (collectively, the \"Acquisitions\" and individually, an \"Acquisition\") from four separate and unrelated vendors.\n\n\nAcquisitions and Issuance of Equity to Certain Vendors\n\n\nAs previously announced, vendors of certain of the properties tha...