TORONTO, ONTARIO--(Marketwired - Mar 2, 2017) - HALMONT PROPERTIES CORPORATION (TSX VENTURE:HMT) announced today preliminary unaudited net income for common shareholders for the year ended December 31, 2016 of $2,012,000 as compared to net income of $1,970,000 in 2015.
The book value of each common share increased to 44¢ at December 31, 2016 compared to 41¢ at the beginning of the year. Halmont revalues its principal assets each year in accordance with IFRS accounting principles, taking into account available market information and the relevant terms of its joint-venture and partnership agreements. As a result the common share book value approximates their realizable values.
In January 2017 Halmont acquired a 60% joint venture interest in the peripheral lands associated with the Muskoka Grandview Resort in Huntsville, Ontario and agreed to provide a $10 million revolving loan facility to finance the construction of a series of residential condominium projects, each containing 15 to 20 units.
In order to strengthen the Company's capital structure and provide for further growth, Halmont issued $10 million Subordinated Convertible Capital Notes in December 2016 with a ten-year term and a 5% interest rate. The Capital Notes are structured with equity-type attributes to qualify them as quasi-permanent capital from the Company's perspective, including providing the company with the right to pay interest in kind and redeem them at the Company's option after December 31, 2020 by delivering 20 million Class B Non-Voting Common Shares to the holders, or earlier in the event of a debt default.
This news release includes certain forward looking statements including management's assessment of the Company's future plans and operations based on current views and expectations. All statements other than statements of historic facts are forward looking statements. These statements contain substantial known and unknown risks and uncertainties, some of which are beyond the Company's control. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements. Readers should not place undue reliance on these forward looking statements which represent estimates and assumptions only as of the date on which such statements are made. The Company undertakes no obligation to publicly revise or update any forward looking statements, whether as a result of new information, future events or otherwise.