MONTREAL, July 29, 2019 (GLOBE NEWSWIRE) -- The Delma Group Inc. (CSE: DLMA) (the “Company” or “Delma”) announces that it has closed the acquisition of the commercial real estate property located at 395-425, rue des Érables, Salaberry-de-Valleyfield, Quebec (the “Property”). The acquisition was completed by virtue of purchasing 100% of the issued and outstanding shares of 9371-9904 Québec Inc. (“9371”), a private portfolio company that owns all of the equity interest in the Property, held jointly by two arm’s length parties to the Company (collectively, the “Vendors”) (the “Transaction”). The Transaction is closed on Thursday, July 25, 2019.
The acquisition of 9371 was paid at a net price of $2,244,967 paid by the issuance of 955,305 class A common shares in the capital of Delma at a price of $2.35 per common share (the “Purchase Price”), which Purchase Price is inclusive of the settlement of an outstanding debt held by one of the Vendors against the Company, totalling $400,000 and being settled by the issuance of common shares of the Corporation at a price of $2.35 per common share. No finder’s fee or commissions of any kind has been paid in connection with the Transaction.
The parties have agreed that the Transaction be structured as a purchase and rollover transaction with Delma’s wholly-owned subsidiary, Delma Real Estate Corporation (“DREC”) for tax efficiency purposes. The Transaction does not constitute a “related party transaction” as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transaction, and, as such, will not require shareholder approval.
This Transaction increases the Company’s total assets to about $110M.
About The Delma Group Inc.:
Delma operates in Canada in the development, acquisition and management of multi-purpose real estate, including retail, multi-suite residential, industrial, and office buildings as well as land for future development. The Company’s investment platform is based on an integrated, agile and efficient develop-to-own strategy that enables the group to capture development profits and the value-add while securing stable long-term returns.
For more information, please visit www.delma.ca and www.sedar.ca. DLMA.CN
Source: The Delma Group Inc.
For more Information, please contact:
Joseph Cianci
CFO
T: 1.844.663.3565 (Ext. 102)
E: joseph.cianci@delma.ca