Horizon North Logistics Inc. Signs Letter of Intent with the City of Toronto for Modular Supportive Housing Initiative
CALGARY, May 11, 2020 /PRNewswire/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX: HNL.TO) announced today that the Corporation has signed a non-binding letter of intent (the "LOI") with CreateTO (the "City") relating to the design, delivery and installation of 110 modular units of permanent supportive housing (the "Pilot Project") by Horizon North.
Revenue from the Pilot Project is expected to be between $17 million and $20 million, with a first group of units targeted to be ready for occupancy late in the third quarter of 2020 and a second group following in the fourth quarter of 2020. Manufacturing for the Pilot Project will be undertaken in Horizon North's NRB Modular Solutions 'center of excellence' in Grimsby, Ontario.
"The modular construction process provides a rapid, innovative solution to the endemic issue of affordable housing in many areas of Canada," says Rod Graham, President and Chief Executive Officer of Horizon North. "Horizon North has had the opportunity to construct 664 supportive housing units in the City of Vancouver and 797 more units across the province of British Columbia. We are proud to bring that experience to providing critical, made-in-Ontario solutions for the City of Toronto."
Adds Mr. Graham: "As the COVID-19 pandemic continues to affect the lives of all Canadians, Horizon North stands ready with our national platform of modular solutions to provide fast, high-quality affordable housing that can contribute to safety and security. We believe every Canadian deserves a home and appreciate the leadership role taken by the City and all levels of government on this initiative."
"As the Mayor of the fastest growing city in North America, it is vital that we have adequate access to housing for all of our residents," says Toronto Mayor John Tory. "Modular housing is one way in which we can create more housing, much faster. The COVID-19 pandemic has made it clear that there is a high demand for supportive housing for vulnerable residents in our city and that we need to start building it immediately. That is why, I am proud that my Council colleagues and I approved an implementation plan that will create 110 modular homes that will be ready for occupancy this September."
"The bold vision and targets outlined in our City's HousingTO 2020-2030 Action Plan are moving forward with significant steps only months after the HousingTO plan was approved by Council," says Deputy Mayor Ana Bailão, (Ward 9 Davenport), Planning and Housing Committee Chair. "These 110 modular homes will provide stable and affordable homes as well as support services to individuals experiencing homelessness, while also reducing pressure on the City's shelters – particularly at a time when there is urgency to fast implement these innovative housing approaches and manage this crisis with long lasting solutions. It is a cost-effective approach which delivers better health and housing outcomes. We're moving forward on our commitment to ensure that Toronto is a place where families and individuals can live in safe, well-maintained and affordable housing."
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Solutions division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.
Corporate Information
Additional information related to Horizon North, including the Corporation's annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
Forward-looking Statements
This news release contains certain statements or disclosures relating to Horizon North that are based on the expectations of its management as well as assumptions made by and information currently available to Horizon North which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Horizon North anticipates or expects may, could or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "anticipate", "will", "expected", "continues", "future", "opportunity", "believe" and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements, including certain financial outlooks pertaining to the following: the delivery of services and products to the City under the Pilot Project; the anticipated timing of design, delivery and occupancy of the modular homes under the Pilot Project; including expected revenue from the Pilot Project; and the anticipated benefits of the Pilot Project.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Horizon North including, without limitation: that Horizon North and the City will enter into a definitive commercial agreement in respect of the Pilot Project; that Horizon North will be reimbursed for certain costs incurred in the event the Corporation and the City do not reach a definitive commercial agreement; the general continuance of current or, where applicable, assumed industry and economic conditions; the ability to continue operations as described in response to the COVID-19 pandemic; the state of the economy and the support services industry generally; and the availability and cost of financing, labour and supplies; that counterparties will comply with contracts in a timely manner.
Horizon North believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct, including in respect of the COVID-19 pandemic and the current economic environment. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: general economic, market and business conditions, including in light of the COVID-19 pandemic; the design, delivery and installation of the modular units may not be provided in the timelines anticipated, in the manner anticipated or at all; the delivery of and demand for the Corporation's services and products may not have the results currently anticipated by Horizon North; reliance on industry partners and suppliers; and certain other risks detailed from time to time in Horizon North's public disclosure documents including, without limitation, those risks identified in this news release, and in Horizon North's annual information form, copies of which are available on Horizon North's SEDAR profile at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.
The forward-looking statements contained in this news release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Horizon North Logistics Inc.
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