An anonymous trustee reports
LANESBOROUGH REIT ENTERS INTO AGREEMENT TO SELL PROPERTY
Lanesborough Real Estate Investment Trust has entered into an asset purchase agreement in connection with the sale of Parsons Landing, 350 Parsons Creek Dr., Fort McMurray, Alta., to 7254751 Manitoba Ltd. for aggregate consideration of $22-million, payable as follows: (i) a $20,000 cash deposit payable to Lanesborough within three business days of the effective date of the agreement; (ii) $35,276,388 through the assumption of the mortgage on the property by 725; (iii) an increase in the line of credit from 2668921 Manitoba Ltd., a sister company of 725, to Lanesborough by $13,296,388; and (iv) the balance of the purchase price payable in cash on closing.
725 is a company controlled by Arni Thorsteinson, an insider of Lanesborough. Accordingly, the transaction is a related-party transaction under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions).
As Lanesborough is not listed on the Toronto Stock Exchange, in accordance with Section 5.5(b) of MI 61-101, the transaction is exempt from the formal valuation requirements of MI 61-101. As Lanesborough is experiencing financial hardship, as defined in Section 5.5(g) of MI 61-101, Lanesborough is also exempt from the requirement to obtain approval of a majority of the minority unitholders of Lanesborough for the transaction.
It is anticipated that the transaction will close on or about May 1, 2024.
Pursuant to the terms of the agreement and the policies of the TSX Venture Exchange, the closing of the transaction is subject to the condition that 725 arrange new and restructured mortgage financing for its acquisition of the property on terms satisfactory to 725 and the final approval of the exchange.
About Lanesborough Real Estate Investment Trust
Lanesborough is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol LRT.UN (trust units).
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