WINNIPEG, Sept. 16, 2015 /CNW/ – Temple Hotels Inc. (“Temple”) (TSX: TPH) today announced that it has filed a final short form prospectus dated September 16, 2015 (the “Final Prospectus”) in respect of its previously announced rights offering for gross proceeds of up to $40,000,000 (the “Rights Offering”) in each of the provinces and territories of Canada, other than the Province of Quebec (the “Eligible Jurisdictions”). Temple intends to use the net proceeds of the Rights Offering to further reduce indebtedness, improve working capital and undertake capital expenditures and/or possible acquisitions.
Under the terms of the Rights Offering, each holder (“Shareholder”) of record of Temple common shares (“Shares”) as at 5:00 p.m. (Toronto time) on September 29, 2015 (the “Record Date”) will receive one right (“Right”) for each Share held, provided that, Rights will not be delivered to, nor will they be exercisable by, persons resident outside of the Eligible Jurisdictions, except in certain circumstances as set forth in the Final Prospectus.
For every 1.1330 Rights held, holders thereof will be entitled to purchase one Share at a subscription price of $1.10 (the “Subscription Price”) during the exercise period commencing October 7, 2015 and ending at 5:00 p.m. (Toronto time) on October 29, 2015. The Subscription Price is at a 20% discount to the five-day volume-weighted average price of the Shares on the Toronto Stock Exchange (the “TSX”) immediately preceding the date of the filing of the Final Prospectus. Rights not exercised by 5:00 p.m. (Toronto time) on October 29, 2015 will be void and of no value. The Final Prospectus is scheduled to be mailed to Shareholders on or about October 7, 2015.
Holders of Rights that fully exercise their Rights under the basic subscription privilege will be entitled to subscribe for additional Shares, if available, under the additional subscription privilege that were not subscribed for by other holders of Rights under the basic subscription privilege. Morguard Corporation, Burgundy Asset Management Ltd., Centennial Group Limited and Arni Thorsteinson (a director and officer of Temple) intend to exercise or cause to be exercised their basic subscription privilege in full and may also subscribe for additional Shares under the additional subscription privilege.
The Rights will be listed on the TSX under the symbol “TPH.RT” and will be posted for trading until 12:00 p.m. (Toronto time) on October 29, 2015 at which time the Rights will be halted from trading. The TSX has approved the listing of the Shares issuable upon the exercise of the Rights subject to Temple fulfilling all of the listing requirements of the TSX.
In connection with the Rights Offering, Temple has engaged National Bank Financial Inc. as its financial advisor.
Further details concerning the Rights Offering and the procedures to be followed by Shareholders are contained in the Final Prospectus which is available on Temple’s profile at www.sedar.com.
Temple is a real estate investment company listed on the TSX under the symbols TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets. For further information on Temple, please visit our website at www.templehotels.ca.
This press release contains certain statements regarding the Rights Offering described herein that could be considered as forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual results differing materially from the forward-looking statements. There can be no certainty of the extent to which Rights will be exercised under the Rights Offering.
The TSX has not reviewed or approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
SOURCE Temple Hotels Inc.