Emergia Inc. Announces Closing of the Acquisition of a Land for Development in Alliston, Ontario
MONTREAL, May 03, 2021 (GLOBE NEWSWIRE) — (CSE: EMER) Emergia Inc. (the “Corporation” or “EMERGIA”) is pleased to announce that it has closed today, May 3, 2021, its previously announced potential acquisition of a land of approximately 100 acres in Alliston, Ontario for a purchase price of $14.4 million (excluding closing costs and a reserve for interests and pre-development costs).
The acquisition of the land was done at arm’s length and the purchase price was paid as follows: (i) $9,600,000 in cash and (ii) $4,800,000 in Class A shares of the Corporation at the issuance price of $1.00 per share of which 300,000 have been issued and 4,500,000 are reserved for issuance upon receipt of the allocation of such shares between the vendors. To satisfy a portion of the purchase price, the Corporation entered into a financing of $9,000,000 at an interest rate of 6% per year payable at maturity on March 10, 2023, plus a participation in the profits of the project.
Zoning of the land is expected to change in the course of 2021, following which the Corporation intends to sell part of the land to a developer of single-family residences (approximately 70 acres). The remainder is intended to be developed by the Corporation in 500 multi-residential units and a proximity services strip shopping center of 50,000 to 60,000 sq. ft.
”After announcing this acquisition at the end of January, we are proud to announce the closing of this transaction which is a first step of our activities in the province of Ontario. Our plan is to realize other transactions to pursue our business plan that includes an expansion in Ontario in the short term,” said Henri Petit, President and CEO of EMERGIA.
ABOUT EMERGIA INC.
EMERGIA operates mainly in Canada in the development, acquisition and management of multi-purpose real estate, including retail, multi-residential, industrial, and office buildings as well as land for future development. The Corporation’s investment platform is based on an integrated, agile and efficient develop-to-own strategy that enables EMERGIA to benefit from development profits and the value-add while securing stable long-term returns.
Source: Emergia Inc.
For more Information, please contact:
T: 1.888.520.1414 (Ext. 231)
This press release contains forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as “about”, “approximately”, “may”, “believes”, “expects”, “will”, “intend”, “should”, “plan”, “predict”, “potential”, “project”, “anticipate”, “estimate”, “continue” or similar words or the negative thereof or other comparable terminology. Such forward-looking information includes, without limitation, statements pertaining to the expected zoning changes and intentions of the Corporation following such changes, the business strategy and plans, and objectives of or involving the Corporation. The forward-looking information is based on certain key expectations and assumptions made by the Corporation. Although the Corporation believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the effect of the COVID-19 pandemic on the Corporation’s financial condition, the real estate industry, and society as a whole, the market for the common shares, volatility of market price for common shares and other risks generally attributable to the business of the Corporation. For additional information with respect to risks and uncertainties, refer to the annual MD&A of the Corporation for the year ended December 31, 2019 and to the other periodic filings that the Corporation has made and may make in the future with the securities commissions or similar regulatory authorities in Canada, all of which are available under the Corporation’s SEDAR profile at www.sedar.com.
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