DALLAS and TORONTO , Sept. 13, 2019 /CNW/ -- NexPoint Hospitality Trust ("NHT") (NHT-U.V) announced today that it has filed and obtained a receipt for a preliminary short form base shelf prospectus with the securities commissions in each of the provinces of Canada (other than Quebec ).
Upon a final short form base shelf prospectus (the "Shelf Prospectus") becoming effective, these filings will, subject to securities regulatory requirements, allow NHT to issue trust units, debt securities, subscription receipts and warrants (the "Securities") in amounts, at prices and on terms based on market conditions at the time of sale and set forth in an accompanying shelf prospectus supplement ("Prospectus Supplement"), for an aggregate offering amount of up to US$500,000,000 during the 25 month period that the Shelf Prospectus is effective.
Unless otherwise specified in a Prospectus Supplement, the net proceeds from the sale of Securities for cash may be used for potential future acquisitions, capital expenditures, to repay indebtedness and general working capital purposes. Each Prospectus Supplement will contain specific information concerning the use of proceeds from that sale of Securities. There is no certainty that any Securities will be offered or sold under the Shelf Prospectus within the 25 month period.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or in any jurisdiction where the offer, sale or solicitation would be unlawful. The Securities referred to in this press release may not be offered or sold in the United States absent registration or an applicable exemption from registration. A copy of the preliminary short form base shelf prospectus can be found on SEDAR at www.sedar.com.
NexPoint Hospitality Trust is a publicly traded real estate investment trust, with its Units listed on the TSX Venture Exchange under the ticker NHT.U. NHT is focused on acquiring, owning and operating well-located hospitality properties in the United States that offer a high current yield and in many cases are underperforming assets with the potential to increase in value through investments in capital improvements, a market-based recovery, brand repositioning, revenue enhancements, operational improvements, expense inefficiencies, and exploiting excess land or underutilized space. NHT owns 11 branded properties sponsored by Marriott, Hilton and Intercontinental Hotels Group, located across the U.S. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P., an affiliate of Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser.
This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects NHT's current expectations regarding future events and in some cases can be identified by terms such as "will", "may", "expected" and other similar expressions. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond NHT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, risks related to the offering or sale of Securities pursuant to the Shelf Prospectus, the completion of the transactions contemplated in this news release in the manner anticipated, and the factors discussed under "Risk Factors" in the preliminary short form base shelf prospectus. Information contained in forward-looking statements is based upon certain material assumptions, including that the Canadian capital markets will provide NHT with access to equity and/or debt financing at reasonable rates when required and that conditions within the U.S. hospitality industry, including competition for acquisitions, will be consistent with the current climate. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect. NHT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE NexPoint Hospitality Trust, Inc.
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