CALGARY , Oct. 17, 2019 /CNW/ - Genesis Land Development Corp. ("Genesis") is pleased to announce the completion of purchase of the $20.5 million vendor take-back mortgage ("VTB") from Limited Partnership Land Pool (2007) ("LPLP" or the "Partnership") for $22.02 million . The VTB bears interest at a rate of 6.5% per annum, payable in arrears in December of each year, with the principal repayable in December 2020 .
The net cash proceeds to the Partnership of the sale (after repayment of $11.66 million owing by the Partnership under the loan by Genesis) were $10.36 million or $0.2364 per limited partnership unit. Genesis funded the VTB purchase price from its corporate resources and credit facilities and intends to re-finance this amount with a third-party lender in the fourth quarter of 2019.
A pro rata distribution of the net cash proceeds was paid by the Partnership to 2474514 Ontario Inc., which holds 22.7% of all of the issued and outstanding limited partnership units of the Partnership on behalf of Caja Paraguaya de Jubilaciones y Pensiones del Personal de Itaipu Binacional ("Cajubi"). Genesis reimbursed a portion of Cajubi's legal fees and other costs associated with negotiating and evaluating the proposed sale transaction in the amount of $100,000 .
The remaining funds will be available for distribution to all other limited partners following receipt of a letter of transmittal containing a release and undertaking and the Partnership obtaining appropriate Court approvals. Funds will be held under a court approved process for those limited partners who do not provide a letter of transmittal pending a resolution of a proposed class action involving the Partnership.
Genesis Land Development Corp. is a land developer and residential home builder in the Calgary Metropolitan Area. The Corporation's common shares are listed on the Toronto Stock Exchange (GDC.TO).
This news release may contain certain statements which constitute forward-looking statements or information ("forward-looking statements") within the meaning of applicable securities legislation, including Canadian Securities Administrators' National Instrument 51-102 Continuous Disclosure Obligations, concerning the proposed distribution of the net cash proceeds of the VTB sale, the appropriate court approvals and the proposed class action. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Although Genesis believes that the anticipated future results, performance or achievements expressed or implied by forward-looking statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements because they involve assumptions, known and unknown risks, uncertainties and other factors many of which are beyond the Corporation's control, which may cause the actual results, performance or achievements of Genesis to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Accordingly, Genesis cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: the failure to obtain any necessary court approvals as proposed or at all; adverse events or outcomes of the proposed class action litigation, ability to access capital on favourable terms; not realizing on the anticipated benefits from transactions or not realizing on such anticipated benefits within the expected time frame; and other risks and factors described from time to time in the documents filed by Genesis with the securities regulators in Canada available at www.sedar.com, including the Corporation's MD&A under the heading "Risks and Uncertainties" and the AIF under the heading "Risk Factors".
The forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, Genesis does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Genesis Land Development Corp.
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