Terra Firma Capital Corporation (TSX-V: TII) ("
Terra
Firma" or the "
Company"), a real estate
finance company, is pleased to announce that the Company and GM
Capital Corp. (the “
Buyer”), an affiliate of Y.
Dov Meyer, the executive chairman of the Company and Seth
Greenspan, managing director of the Company, have entered into an
arrangement agreement (the “
Arrangement
Agreement”) whereby the Buyer will acquire all of
the issued and outstanding common shares of the Company (the
“
Shares”) not held by the Buyer by way of a
statutory plan of arrangement under the Business Corporations Act
(Ontario) (the “
Transaction”).
The Arrangement Agreement
Under the terms of the Arrangement Agreement,
each shareholder of the Company (the
“Shareholders”) will receive cash consideration of
C$7.30 for each Share held (the “Consideration”),
valuing the Company’s total equity at approximately C$46 million on
a fully diluted basis. The Consideration represents a 57.0% premium
to the closing price of the Shares on the TSX Venture Exchange (the
“TSXV”) on December 21, 2022, the last trading day
prior to the Company’s announcement of the strategic review
process, a 16.8% premium to the closing price of the Shares on the
TSXV on July 20, 2023, the last trading day prior to the Company’s
update on its strategic review process, and a 5.8% premium to the
closing price of the Shares on the TSXV on August 31, 2023.
Transaction Highlights
- The
Transaction provides attractive value for Shareholders,
representing a premium of approximately 57.0% to the closing price
of the Shares on the TSXV prior to the Company’s announcement of
the strategic review process on December 21, 2022.
- All cash
offer that is not subject to a financing condition.
- A
special committee comprised of independent directors of the Company
(the “Special Committee”)
unanimously recommended that the board of directors of the Company
(the “Board”) approve the Transaction. The Board
(with Mr. Meyer abstaining) unanimously approved the Transaction
and unanimously recommends that the Shareholders vote in favour of
the Transaction.
- The
Special Committee has obtained a fairness opinion from each of
Cormark Securities Inc. (“Cormark”) and MNP LLP
(“MNP”).
- The
Buyer has entered into voting support agreements with shareholders
and all of the directors of the Company (excluding Mr. Meyer)
holding 47.05% of the outstanding Shares, including voting support
agreements with Somers Limited, GG North America Investments
Limited Partnership and Pathfinder Asset Management Limited
(collectively, the “Supporting
Shareholders”).
“Since the fourth quarter of 2022, the Company
has been managing our assets and selling certain investments with a
view to maximizing value for shareholders. We are pleased to have
reached an agreement with Dov Meyer and Seth Greenspan for a sale
transaction that provides a very favourable outcome for
shareholders and will avoid some of the costs and inefficiencies of
other potential alternatives for the Company”, commented Glenn
Watchorn, President and CEO of the Company.
Transaction Details
Under the Arrangement Agreement, the Buyer will
acquire the Company, and each Shareholder will receive C$7.30 per
Share. The Consideration represents a total equity value of
approximately C$46 million on a fully diluted basis. The
Transaction is not subject to a financing condition.
The Transaction will be implemented by way of a
statutory plan of arrangement under the Business Corporations Act
(Ontario) and will require the approval of 66 2/3% of the votes
cast by Shareholders, as well as the approval by a simple majority
of votes cast by the Shareholders, excluding the Buyer and its
affiliates, and any other Shareholders required to be excluded
under Multilateral Instrument 61-101 – Protection of Minority
Security Holders in Special Transaction (“MI
61-101”), at a special meeting of the Shareholders to be
called to approve the Transaction (the “Special
Meeting”). It is anticipated that the Special Meeting will
be held in October 2023. Following closing of the Transaction, the
Shares will be delisted from the TSXV. The Transaction is expected
to close in the last quarter of 2023.
The completion of the Transaction is subject to
obtaining required court and other approvals and satisfaction of
closing conditions customary for a transaction of this nature. The
Arrangement Agreement includes customary deal-protection provisions
with customary "fiduciary out" provisions. The Company is subject
to non-solicitation provisions which, in certain circumstances,
allow the Board to terminate the Arrangement Agreement in favour of
a superior proposal, subject to the payment of a termination fee of
C$1,300,000, in certain circumstances, and a right of the Buyer to
match such superior proposal.
The foregoing summary is qualified in its
entirety by the provisions of the Arrangement Agreement, a copy of
which will be filed with the Canadian securities regulators and
made available under the Company’s profile on SEDAR+ at
www.sedarplus.ca.
Special Committee and Board
Recommendations
As Mr. Meyer beneficially owns approximately
7.5% of the issued and outstanding Shares and serves as a director
and the executive chairman of the Company, the Transaction
constitutes a “business combination” for purposes of MI 61-101. In
connection with the Company’s previously announced review of
strategic alternatives, the Board had formed the Special Committee
to, among other things, review and evaluate potential strategic
alternatives for the Company, including among other potential
alternatives, a sale of the Company. The Special Committee was
responsible for reviewing, evaluating and negotiating the terms of
proposals received from the Buyer and other parties, making
recommendations to the Board in respect of such proposals, and
negotiating the terms of the Transaction.
The Board (with Mr. Meyer abstaining), based on
the unanimous recommendation of the Special Committee, has
determined that the Transaction is fair to Shareholders and that
the Transaction is in the best interests of the Company. The Board
(with Mr. Meyer abstaining) has also recommended that Shareholders
vote in favour of the Transaction at the Special Meeting. The
Special Committee has obtained verbal fairness opinions from each
of Cormark and MNP, financial advisors to the Special Committee,
that, as at August 31, 2023, subject to certain assumptions and
limitations , the Consideration to be received by Shareholders,
other than the Buyer and its affiliates, is fair, from a financial
point of view, to such Shareholders. The fees payable to MNP for
its financial advice and the provision of its fairness opinion are
fixed and are not conditional on the success of the
Transaction.
Copies of the written fairness opinions of
Cormark and MNP and other relevant background information will be
included in the management information circular (the
“Circular”) of the Company to be prepared in
connection with the Special Meeting. The Company will send the
Circular and certain related documents to Shareholders and copies
of the Circular and certain related documents will be filed with
the Canadian securities regulators and will be made available under
the Company’s profile on SEDAR+ at www.sedarplus.ca. Until the
Circular is mailed, Shareholders are not required to take any
action in respect of the Transaction.
Voting Agreements
In addition, the Buyer has entered into voting
support agreements with the directors of the Company (excluding Mr.
Meyer) and each of the Supporting Shareholders for, among other
things, the agreement of each of the directors and Supporting
Shareholders to vote their Shares at the Special Meeting in favour
of the Transaction. Collectively, the Supporting Shareholders and
directors (excluding Mr. Meyer) hold approximately 47.05% of the
outstanding Shares.
Advisors and Counsel
Blake, Cassels & Graydon LLP is acting as
counsel to the Company.
Cormark is acting as financial advisor to the
Special Committee and MNP is acting as independent financial
advisor to the Special Committee. Norton Rose Fulbright Canada LLP
is acting as independent legal counsel to the Special
Committee.
Goodmans LLP is acting as counsel to the
Buyer.
About the Company
Terra Firma is a publicly traded real estate
finance company that provides real estate financings secured by
investment properties and real estate developments in the United
States and Canada. The Company focuses on arranging and providing
financing with flexible terms to real estate developers and owners
who require shorter-term loans to bridge a transitional period of
one to five years where they require capital at various stages of
development or redevelopment of a property. These loans are
typically repaid with lower cost, longer-term debt obtained from
other Canadian financial institutions once the applicable
transitional period is over or the redevelopment is complete, or
from proceeds generated from the sale of the real estate
assets.
More information about the Company is available
at www.tfcc.ca or under the Company's profile on SEDAR+ at
www.sedarplus.ca.
For more information:
Terra Firma Capital CorporationShelley
OchoaChief Financial OfficerPhone:
416.792.4707sochoa@tfcc.ca
The TSXV has neither approved nor disapproved
the contents of this press release. The TSXV does not accept
responsibility for the adequacy or accuracy of this press
release.
CAUTIONARY AND FORWARD-LOOKING
STATEMENTS
Certain statements in this news release
constitute forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements generally
can be identified by the use of terms and phrases such as “will”,
“may”, “subject to”, “expected”, “if”, “option”, and similar terms
and phrases, including references to assumptions and limitations.
Some of the specific forward-looking statements in this news
release include, but are not limited to, statements with respect
to: the Transaction and the terms thereof; the anticipated date of
the Special Meeting; the expected timing for completion of the
Transaction; regulatory, court and Shareholder approvals; the
delisting of the Shares from the TSXV; and the anticipated benefits
of the Transaction to the Shareholders. There can be no assurance
that the proposed Transaction will be completed or that it will be
completed on the terms and conditions contemplated in this news
release. The proposed Transaction could be modified, restructured
or terminated in accordance with its terms.
Forward-looking statements are based on
information available at the time they are made, underlying
estimates and assumptions made by management and management's good
faith belief with respect to future events, performance and
results. Such assumptions include, without limitation, expectations
and assumptions concerning the anticipating timing of the
Transaction and the Special Meeting, the anticipated benefits of
the Transaction to the Shareholders, the delisting of the Shares
from the TSXV and the receipt in a timely manner of regulatory,
court and Shareholder approvals for the Transaction.
Forward-looking statements involve known and
unknown risks, uncertainties and other factors, some of which are
beyond the Company’s control, which may cause actual events,
results or performance to be materially different from the events,
results, or performance expressed in such forward-looking
statements. Such risks and uncertainties include, but are not
limited to, the inherent risks and uncertainties surrounding future
expectations of the Company, general economic, market and business
conditions in Canada and globally, governmental and regulatory
requirements and actions by governmental authorities, changes and
competition in the real estate industry, financing and refinancing
risks, changes in economic conditions, changes in interest rates,
changes in taxation rules, reliance on key personnel and potential
diversion of management time on the Transaction, environmental
matters, risks related to the nature of the Company’s investments
and its investment portfolio, tenant risks and dependence on
tenants’ financial conditions, fluctuations in commodity prices and
other risk factors more particularly described in the Company’s
most recently filed annual Management’s Discussion and Analysis,
any subsequently filed interim Management’s Discussion and Analysis
or the Company’s most recently filed Annual Information Form
available on SEDAR+ at www.sedarplus.ca. The anticipated timeline
for completion of the Transaction may change for a number of
reasons, including the inability to secure necessary regulatory,
court, Shareholder or other approvals in the time assumed, third
party litigation or the need for additional time to satisfy the
conditions to the completion of the Transaction. Additional risks
and uncertainties not presently known to the Company or that the
Company currently believes to be less significant may also
adversely affect the Company.
Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended. Forward-looking statements contained herein
are made as of the date of this news release and the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, results or otherwise, except as may be required
under applicable securities laws. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Terra Firma Capital (TSXV:TII)
過去 株価チャート
から 11 2024 まで 12 2024
Terra Firma Capital (TSXV:TII)
過去 株価チャート
から 12 2023 まで 12 2024