MONTREAL,
March 18, 2013 /CNW Telbec/ - Capital
BLF Inc. (the "Corporation"), a company listed on the TSX
Venture Exchange (the "TSX-V", (symbol: BLF)), announced
that it has closed on Friday, March 15,
2013, the previously announced private placement (the
"Private Placement") of 102,174,000 common shares at a price
of $0.23 per common share for gross
proceeds of $23.5 million. The net proceeds of the Private
Placement were used today to purchase the three previously
announced acquisition properties in Québec City and Montréal. The
securities issued under the Private Placement are subject to a
four-month hold period ending on July 16,
2013. The Private Placement was brokered by Scotiabank and
National Bank Financial Inc., acting as co-lead agents.
"We are very pleased to have closed our first
acquisitions and equity financing in a timely manner since my
arrival in December 2012" commented
Mathieu Duguay, President and CEO.
"We believe that our entrepreneurial culture and local presence in
the Province of Québec will provide us with access to many
opportunities to acquire similarly attractive properties that will
enhance the value of our company."
As part of the Private Placement, Mr. Duguay
subscribed to 20,434,800 shares, Mr. Claude
Blanchet, Chairman of the Board of the Corporation,
subscribed to 2,173,900 shares and Mr. Marc
Marois, Vice-President Investment and Asset Management and
member of the Board of the Corporation, subscribed to 355,000
shares. Following closing of the Private Placement, Mr. Duguay, Mr.
Blanchet and Mr. Marois hold an ownership interest in the
Corporation representing approximately 19.99%, 3.27% and
1.06%, respectively.
Concurrent with the closing of the Private
Placement, the conditional asset management agreement with First
Investor, L.P. and conditional property management agreement with
Société de gestion Cogir s.e.n.c. described in the March 4, 2013 press release came into effect.
In addition, the Corporation announced that it
has entered into a commitment for a revolving acquisition facility
(the "Acquisition Facility") with First National Financial
LP in the amount of $10 million for a
term of two years. The Acquisition Facility will be secured by
first or second charges on the Corporation's properties, and will
be used to strategically finance future acquisitions. The
Acquisition Facility provides the Corporation with financial
flexibility to execute on its strategy of consolidating the
multi-family residential sector in the Province of Québec.
The Corporation also announced today that it has
declared its first monthly cash dividend, in the amount of
$0.0008 per share, to be paid on
May 15, 2013, to shareholders of
record on April 30, 2013.
The Corporation also announced today that it has
granted to certain members of management and its directors a total
of 6,601,800 stock options for common shares pursuant to its stock
option plan. The stock options have a term of 5 years, an exercise
price of $0.28 per share and will
vest after a period of 2 years.
About Capital BLF Inc.
The principal business of the Corporation is
acquiring, holding, developing, maintaining, improving, leasing,
managing or otherwise dealing with income-producing multi-unit
residential properties located throughout Canada, primarily in the province of Québec.
The Corporation currently owns seven properties located in
Montréal, Dorval and Québec City
totaling 694 apartment units.
Forward-Looking Information
This press release contains forward-looking
statements. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "estimates", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved. Forward-looking statements involved
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements expressed or
implied by the forward-looking statements. Accordingly, readers
should not place undue reliance on forward-looking statements. The
factors identified above are not intended to represent a complete
list of the factors that could affect the Corporation. Management
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or circumstances, except as required by law.
The TSX-V has in no way passed upon the merits
of the proposed transactions and has neither approved nor
disapproved the contents of this press release.
Neither the TSX-V nor its Regulation Services
Provider (as that term is defined in policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE CAPITAL BLF INC.