Business
WestCap Investments Corp. Completes Conversion into R&R REIT
Acquires Maryland Hotel and Completes Private Placement TORONTO , Aug. 25, 2014 /CN...
About this update from R&r Real Estate Investment Trust
[{"type":"text","content":"\n\nAcquires Maryland Hotel and Completes Private Placement\n\n\n\nTORONTO, Aug. 25, 2014 /CNW/ - WestCap Investments Corp. (the \"Company\") (TSXV: WI.P), a capital pool company, announced today that it has effected its plan of arrangement transaction (the \"Plan\") pursuant to which, among other things, the shareholders of the Company have exchanged their shares for units (the \"Units\") of R&R Real Estate Investment Trust (the \"REIT\", and together with the Company, \"R&R\") on the basis of 1 Unit (or if a shareholder so elected, 1 special voting unit of R&R accompanying a limited partnership unit of R&R Limited Partnership, referred to as a \"Class B LP Unit\") for every one Unit, and has completed the US$8,500,000 acquisition (the \"Acquisition\") of a Red Roof Inn located at 827 Elkridge Landing Road, Linthicum Heights, Anne Arundel County, Maryland 21090 (the \"Property\"), as its \"Qualifying Transaction\" (as that term is defined in TSX Venture Exchange (\"TSXV\") Policy 2.4 – Capital Pool Companies) as consideration for the issuance by R&R (US) Limited Partnership of 51,408,895 Class B limited partnership units (\"US Class B LP Units\") which are exchangeable for the equivalent number of Units. \n\nAs part of the Plan and Acquisition, the Company also completed a brokered private placement (sold on a commercially reasonable efforts basis, with Raymond James Ltd. acting as lead agent) of 11,111,111 common shares at $0.18 per share for gross proceeds of approximately C$2,000,000 (the \"Financing\"). As part of the Plan, all such shares were transferred to the REIT and exchanged for Units on a one-to-one basis. \n\nIt is expected that final approval of the transactions referred to above be granted by the TSX Venture Exchange (the \"TSXV\") shortly.  The REIT will be listed as a Tier 1 real estate issuer on the TSXV.  It is expected that the Units will commence trading on the TSXV on or around Thursday, August 28, 2014 under the symbol \"RRR\" concurrently with the delisting of the Company's shares from the TSXV.\n\nFollowing completion of the transactions referred to above, R&R will have 21,011,111 Units issued and outstanding, of which 4,250,000 Units will be subject to escrow as noted below.\n\nAbout the Transactions\n\nThe REIT indirectly acquired the Property for a purchase pr...