TORONTO, Dec. 16, 2016 /PRNewswire/ -- Mainstreet Health Investments Inc. (TSX:HLP.U) (the "Company") is pleased to announce that it has completed its previously announced offering of US$45,000,000 aggregate principal amount of 5.00% convertible unsecured subordinated debentures (the "Debentures") of the Company due January 31, 2022 (the "Offering"). The Offering was underwritten by a syndicate of underwriters led by National Bank Financial Inc., BMO Capital Markets and CIBC Capital Markets.
The Company intends to use the proceeds from the Offering to finance the previously announced acquisition of a portfolio of three memory care communities located in Arkansas and Texas (the "Acquisition"). These newly developed assets further expand the Company's geographic and property-type diversification, in addition to adding a new operating partner in Memory Care America, LLC.
"We continue to execute on the strategy we laid out when the Company completed its initial public offering in June of this year," said Scott White, president and chief operating officer. "This transaction is a perfect example of our ability to source high-quality assets with exceptional operating partners."
The Debentures were offered pursuant to a short-form prospectus dated December 9, 2016 filed in each of the provinces and territories of Canada, which describes the terms of the Offering. A copy of the short-form prospectus is available under the Company's profile on the SEDAR website at www.sedar.com.
The securities offered pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or to, or for the account or benefit of, U.S. persons.
About Mainstreet Health Investments Inc.
Mainstreet Health Investments Inc. is a North American health care real estate company with a growing portfolio of high-quality properties located in the United States and Canada. Our properties are operated by best-in-class health care providers primarily under long-term, triple net leases. Our mission is to create long-term shareholder value while providing an investment opportunity that matters. For more information, visit www.mainstreethealthinvestments.com.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the completion of the Acquisition and the proposed use of proceeds of the Offering. The forward-looking statements in this news release are based on certain assumptions, including, without limitation, that all conditions to the completion of the Acquisition will be satisfied or waived. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the Company's most recent annual information form and final short-form prospectus dated December 9, 2016, each of which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE Mainstreet Health Investments Inc.