Montreal, Quebec, January 29, 2021 – (CSE: EMER) Emergia Inc. (the “Corporation” or “EMERGIA”) is pleased to announce it has entered into a binding agreement to purchase a land of approximately 100 acres in Alliston, Ontario for a purchase price of $15.7 million (including closing costs and a reserve for interests and pre-development costs). The closing is expected to take place in the first quarter of 2021 and is subject to customary conditions.
The acquisition of the land, done at arm’s length, will be made through a 50/50 joint venture with third parties, whereby the Corporation will remain in charge of the management of the development project. The Corporation and its joint venture partner will each inject $5.4 million and a financing of $4.9 million with institutional lenders is being put in place to fund the balance of the purchase price. The Corporation has already paid $0.6 million in cash and the balance of its $5.4 million portion will be paid by the issuance of $4.8 million of class “A” common shares of the Corporation to be issued at the higher of the closing price of the shares on the day preceding the closing of the acquisition or $1.00 per share.
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.
”This transaction is perfectly in line with the Corporation’s business model that includes mixed-use development and sale of excess lands that do not fit in our model. It also meets our goal of expanding our operations in Ontario, and this is a good opportunity for EMERGIA to start its activities in the province of Ontario” 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.
For more information, please visit www.emergia.com and www.sedar.com. EMER.CN
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 anticipated financing and closing of the acquisition, 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, including expectations and assumptions concerning satisfaction of all conditions of closing, the receipt of required approvals and the availability of capital resources. 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.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.