Firm Capital American Realty Partners Corp. Announces Initiatives to Further Strengthen the Balance Sheet and Enhance Long-Term Shareholder Value

TORONTO, May 28, 2018 (GLOBE NEWSWIRE) -- Firm Capital American Realty Partners Corp. (the “Corporation”) (TSX-V:FCA.U) (TSX-V:FCA) is pleased to announce the following initiatives to further strengthen the Corporation’s balance sheet and enhance long-term shareholder value:

DEBENTURES REPAYMENT UPDATE
As a result of cash generated from ongoing single-family home sales, the Corporation has repaid approximately $2.0 million of the 7.0% Convertible Unsecured Debentures (the “Debentures”). Overall, the Company has repaid approximately $9.2 million or 53% of the Debentures, leaving a current outstanding balance of approximately $8.1 million.

EXCHANGE APPROVAL OF NORMAL COURSE ISSUER BID
The Corporation is also pleased to announce that it has received approval from the TSX Venture Exchange (the “Exchange”) for a normal course issuer bid (the “Bid”) to purchase for cancellation up to 423,385 common shares in the capital of the Corporation (the “Common Shares”) in total, being 10% of the Corporation’s “Public Float” (as that term is defined in the policies of the Exchange) to be transacted through the facilities of the Exchange starting on May 30, 2018 for a 12-month period. The actual number of Common Shares that may be purchased pursuant to the Bid will be determined by management of the Corporation (the “Management”). Purchases pursuant to the Bid will be made by Canaccord Genuity on behalf of the Corporation.

Decisions regarding the timing of purchases under the Bid will be determined by Management based on market conditions, share price, and other factors. Management may elect to not purchase any Common Shares under the Bid, or may elect to suspend or discontinue the Bid at any time. Any purchases pursuant to the Bid will be financed from the working capital of the Corporation.

The Board of Directors of the Corporation believes the underlying value of the Corporation may not be reflected at times in the market price of its Common Shares. Accordingly, the purpose of the Bid is to enhance long-term shareholder value through the purchase and cancellation of Common Shares at a discount to the underlying value of the Corporation.

SINGLE-FAMILY HOME DISPOSITION PROGRAM UPDATE
Outside of a portfolio of 120 single-family homes located in Atlanta that is conditionally sold, the Corporation currently owns only eight single-family homes located in Georgia and New Jersey. Of these remaining homes, the Corporation has conditional sales contracts in place for six of them for anticipated gross proceeds of approximately $1.3 million. These single-family home sales are anticipated to close in 2018 and the net proceeds generated will be used for further repayments of the Debentures.

About the Corporation

The Corporation is a United States focused real estate investment company that pursues real estate and debt investments through the following platforms:

• Income Producing Real Estate Investments: Acquiring income producing real estate assets in major cities across the United States. Acquisitions are completed by the Corporation primarily in joint venture partnerships with local industry expert partners who retain property management responsibilities; and
  
  
• Mortgage Debt Investments: Real estate debt and equity lending platform in major cities across the United States, focused on providing all forms of bridge mortgage loans and joint venture capital.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions, and include statements relating to the number of Common Shares purchased pursuant to the Bid and the benefits of the Bid, including the enhancement of long term shareholder value. Forward-looking statements necessarily involve known and unknown risks, including those described in the Corporation’s most recent Annual Information Form and the preliminary prospectus supplement filed in respect of the Offering, under “Risk Factors” (copies of which can be obtained at www.sedar.com). Such risks include, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Corporation holds properties; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Corporation to implement its business strategies; competition; currency and interest rate fluctuations; the Corporation’s inability to obtain regulatory approval for the Bid and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. In particular but without limitation, the Bid may be discontinued at any time at the option of the Corporation without the maximum number of shares having been acquired. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Except as required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.