Flagship Communities Real Estate Investment Trust Announces Closing of US$81.0 Million Equity Offering
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TORONTO, June 14, 2021 /CNW/ – Flagship Communities Real Estate Investment Trust (the "REIT" or "Flagship") (TSX: MHC.U) announced today that it has completed its previously announced public offering (the "Offering") of 4,500,000 trust units (the "Units"), inclusive of 500,000 Units issued pursuant to the exercise of the over-allotment option, on a bought deal basis at a price of US$18.00 per Unit for total gross proceeds to the REIT of US$81.0 million. The Offering was completed through a syndicate of underwriters co-led by BMO Capital Markets and Canaccord Genuity Corp.
The REIT intends to use the net proceeds from the Offering to fund the purchase price of the REIT’s previously announced acquisition of two high-quality manufactured housing communities comprising 677 lots for an aggregate purchase price of approximately US$66.4 million (exclusive of closing and transaction adjustments) (collectively, the "Acquisitions") and to fund future acquisitions and for general business purposes.
About Flagship Communities Real Estate Investment Trust
Flagship Communities Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been formed to own and operate a portfolio of income-producing manufactured housing communities located in Kentucky, Indiana, Ohio, Tennessee, Arkansas and Missouri; including a fleet of manufactured homes for lease to residents of such housing communities.
This press release contains statements that include forward-looking information within the meaning of Canadian securities laws, including with respect to the use of the net proceeds from the Offering, the completion of the Acquisitions and the timing thereof. In some cases, forward-looking statements can be identified by terms such as "may", "will", "could", "occur", "expect", "anticipate", "believe", "intend", "estimate", "target", "project", "predict", "forecast", "continue", or the negative thereof or other similar expressions concerning matters that are not historical facts.
These forward-looking statements reflect the current expectations of the REIT regarding future events. The REIT has based these forward-looking statements on certain assumptions about future events and trends, including that the conditions to closing of the Acquisitions will be met or waived in a timely manner and that the Acquisitions will be completed on the current agreed upon terms. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect. The REIT cautions that this list of assumptions is not exhaustive.
Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REIT’s internal expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties and may not prove to be accurate and certain objectives and strategic goals may not be achieved. A variety of factors, many of which are beyond the REIT’s control, could cause actual results in future periods to differ materially from current expectations of events or results expressed or implied by such forward-looking statements, such as the risks identified in the REIT’s current annual information form available at www.sedar.com, including under the heading "Risks and Uncertainties" therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made.
SOURCE Flagship Communities Real Estate Investment Trust