This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Amica Mature Lifestyles To Acquire Majority Ownership In Amica At Westboro Park And Announces $24.8 Million Offering Of Common Shares

Stocks in this article: ACC

/ NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/

VANCOUVER, April 24, 2012 /PRNewswire/ - (TSX: ACC) - Amica Mature Lifestyles Inc. ("Amica" or the "Company") is pleased to announce that it has entered into agreements to acquire an additional 73.5% aggregate ownership interest in Amica at Westboro Park, located in Ottawa, Ontario. In connection with this acquisition, the Company is also pleased to announce that it has entered into an agreement with Canaccord Genuity Corp., together with a syndicate of underwriters (the "Underwriters"), to purchase, on a bought deal basis, 2,750,000 common shares ("Common Shares") of the Company at a price of $9.00 per Common Share (the "Offering").

The acquisition of the additional 73.5% ownership interest will bring the Company's ownership position in Amica at Westboro Park to 87.5%. The closing date and effective date for the acquisition is anticipated to be June 1, 2012.

The purchase price to be paid for the acquisition of the 73.5% ownership interest will be approximately $30.72 million, including cash consideration of $7.35 million, and the assumption of the vendors' share of a mortgage on the property and other net liabilities in the amount of approximately $23.37 million.

"Amica at Westboro Park is currently in the late stage of lease-up with occupancy at approximately 82%. Based on an additional 3 net pending move-ins, occupancy is expected to reach 84% by the end of April. We are confident that we will see this community reach stabilized occupancy over the course of the next few months," said Samir Manji, Chairman, President and Chief Executive Officer. "Additionally, we are pleased with the financial performance of Amica at Westboro Park and we look forward to adding Amica at Westboro Park to our growing list of consolidated properties."

Amica at Westboro Park opened in September 2008 and has a total of 137 suites.  It is located in the mature and prestigious Westboro community of Ottawa.  It represents one of the premier retirement residences in the entire Ottawa market and includes all of the Wellness & Vitality™ design features that represent the Amica brand, including a LUXURA™ Spa, featuring salon services such as manicures, pedicures and massage therapy. Based on the projected fiscal 2013 net operating income, the Company estimates that the capitalization rate to be paid on this transaction is approximately 7% and would be approximately 7.5% upon achieving occupancy of 95%. The community has a first mortgage in place (non CMHC-insured) at an interest rate of 4.00% that matures on December 31, 2012.

Pursuant to the Offering, the Company has agreed to sell 2,750,000 Common Shares, on a bought deal basis to the Underwriters, at a price of $9.00 per Common Share for gross proceeds of $24,750,000. In addition, Amica has granted to the Underwriters an over-allotment option exercisable at any time up to 30 days after closing of the Offering to acquire up to an additional 412,500 Common Shares of the Company. In the event that the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be $28,462,500. The net proceeds from the Offering (after deducting the underwriters' fee and estimated Offering expenses) will be used to fund the Amica at Westboro Park acquisition described herein, future acquisition opportunities, capital needs of properties in lease-up and development, future acquisitions of increased ownership positions in existing Amica communities and for general corporate and working capital purposes.

The Common Shares will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101 - Short Form Prospectus Distributions and in the United States pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

Closing of the Offering is currently expected to take place on May 15, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

About Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design, development and ownership of luxury housing and services for mature lifestyles. There are 25 Amica Wellness & Vitality™ Residences, including a recent acquisition that the Company is transitioning to rebrand, one under development and one in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit www.amica.ca.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements").

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs