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TORONTO, May 16, 2022 /CNW/ – First Capital Real Estate Investment Trust (“First Capital” or the “REIT”) (TSX: FCR.UN), announced today that it has received approval from the Toronto Stock Exchange (“TSX ) to commence an issuer bid (“TPO”) which will allow it to purchase for cancellation up to 21,910,353 of its outstanding trust units (“Units”), representing 10% of the public float of the REIT (i.e. 219,103,537 units at the close of business on May 5, 2022). As at the close of business on May 5, 2022the REIT had 219,713,038 trust units issued and outstanding.
Purchases under the OPRCA can begin on May 18, 2022 and continue until May 17, 2023, when the issuer bid expires, or on such earlier date as First Capital completes its purchases under the issuer bid. Purchases will be made in the open market through the facilities of the TSX, other designated exchanges and/or other Canadian trading systems.
In accordance with TSX rules, any daily redemption (other than pursuant to a bulk purchase exception) will be limited to a maximum of 129,334 Units, which represents 25% of the average daily trading volume of the Units on the TSX for the six months ended April 30, 2022 (i.e. 517,338 Units). All redeemed units will be cancelled.
In connection with the issuer bid, First Capital will enter into an automatic unit repurchase program (the “Plan”) to facilitate the purchase of Units pursuant to the issuer bid and under which its broker can buy units according to a set of pre-established criteria. If implemented, the plan will permit the purchase of units at any time, including when First Capital would not normally be active in the market due to internal trading blackout periods, tort rules insiders or otherwise.
The Board of Trustees of First Capital has authorized the issuer bid because it believes that, from time to time, the purchase of Units at certain market prices may be an attractive and appropriate use of REIT funds which will provide additional cash for the issued and outstanding Units and to benefit the remaining Unitholders by increasing their proportionate ownership in the REIT. The OPRCA will provide First Capital with additional flexibility to manage capital and generate value for unitholders. Decisions regarding the timing of future unit purchases will be based on market conditions, unit price and other factors. Although First Capital currently intends to acquire its Units, it will not be obligated to make any purchases.
First Capital is a leading owner, operator and developer of mixed-use, grocery-anchored properties located in from Canada most densely populated cities. First Capital’s goal is to create thriving urban neighborhoods to generate value for businesses, residents, communities and our investors.
Notice on Forward-Looking Statements
This press release contains forward-looking statements and information within the meaning of applicable securities laws, including statements relating to First Capital’s intention to make purchases of Units pursuant to an issuer bid. These forward-looking statements are not historical facts, but rather reflect First Capital’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include the risks described in First Capital’s MD&A for the year ended December 31, 2021 and for the quarter ended March 31, 2022 and in its current Annual Information Form. Accordingly, readers should not place undue reliance on these forward-looking statements. First Capital undertakes no obligation to publicly update these forward-looking statements or to reflect new information or the occurrence of future events or circumstances, except as required by applicable securities law.
All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.
SOURCE First Capital Real Estate Investment Trust
For further information: Neil Downey, Executive Vice President, Corporate Strategies and Chief Financial Officer, (416) 530-6634, [email protected]www.fcr.ca, TSX: FCR.UN