CHC Realty Capital Corp. Announces Change in Private Placement Terms

11/06/2014 17:01 EST

TORONTO, ONTARIO--(Marketwired - Nov. 6, 2014) - CHC Realty Capital Corp. ("CHC" or the "Company") (TSX VENTURE:CHC) wishes to announce that following negotiations with a lead institutional investor for the Company's previously announced brokered private placement, CHC has agreed to change the terms of the private placement so that the common share purchase warrant to be issued as part of the offered units will be a full warrant rather than a half warrant and the exercise period for the warrant will be extended from two to three years. All other terms of the private placement remain as previously announced.

As revised, the Company plans to raise a minimum of $8.15 million and a maximum of $10.85 million under the private placement through the issuance of a minimum of 74,090,910 units and a maximum of 98,636,364 units at a price of $0.11 per unit. Each unit will consist of one common share of the Company and one common share purchase warrant of the Company. Each warrant will be exercisable to acquire one common share of the Company at an exercise price of $0.13 per share for a period of three years from issuance.

The net proceeds from the private placement will be used to complete the Company's previously announced acquisition of an apartment building located at 675 Richmond Street, London, Ontario (368 beds in 187 apartments as well as 12,642 s.f. of commercial space having a purchase price of $55.0 million).

The private placement and the acquisition remain subject to the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange. CHC has received conditional approval of the private placement and the acquisition from the TSX Venture Exchange.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About CHC Realty Capital Corp.

CHC Realty Capital Corp. is an owner and operator of student housing properties which is focused on acquiring high quality properties in close proximity to universities and colleges in primary and well understood secondary markets in Canada.

Cautions Regarding Future Plans and Forward Looking Information

This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the completion of the proposed transaction and the business strategies of CHC. Although CHC believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. CHC cautions investors that any forward-looking information provided by CHC is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: CHC's ability to complete the proposed transactions; the state of the real estate sector in the event the proposed transactions are completed; recent market volatility; CHC's ability to secure the necessary financing or to be fully able to implement its business strategies; and other risks and factors that CHC is unaware of at this time. The reader is referred to CHC's continuous disclosure documents for a more complete discussion of risk factors relating to CHC and their potential effects, copies of which may be accessed through CHC's profile on SEDAR at www.sedar.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The TSX Venture Exchange ("TSXV") has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.



CHC Realty Capital Corp.
Mark Hansen
President and Chief Executive Officer
(647) 288-9355
mhansen@chcrealty.ca

CHC Realty Capital Corp.
Robert Waxman
Chief Financial Officer
(647) 288-9375
rwaxman@chcrealty.ca


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