- EMERGIA has acquired approximately 100 acres of land in Alliston, Ontario
- The $14.4M purchase price included $9,600,000 in cash and $4,800,000 in Class A shares of the corporation
- To satisfy a portion of the purchase price, EMERGIA has entered into a $9,000,000 financing arrangement
- EMERGIA plans to pursue other transactions that include further expansion in Ontario
- Emergia Inc. (EMER) is down 6.25 per cent, trading at C$0.75 per share at 4:15 pm ET
EMERGIA has acquired approximately 100 acres of land in Alliston, Ontario for a purchase price of $14.4 million.
The acquisition was done at arm’s length and the purchase price included $9,600,000 in cash and $4,800,000 in Class A shares of the corporation at $1.00 per share.
300,000 shares have been issued and 4,500,000 are reserved for receipt of the allocation of such shares between the vendors. To satisfy a portion of the purchase price, the corporation entered into a financing arrangement of $9,000,000 at an interest rate of 6% per year payable at maturity on March 10, 2023, plus participation in the profits of the project.
Zoning of the land is expected to change in the course of 2021, following which Emergia intends to sell 70 acres of the land to a residential developer. The remainder is intended to be developed by the corporation into 500 multi-residential units and a 50,000 to 60,000 sq. ft. strip mall.
”After announcing this acquisition at the end of January, we are proud to announce the closing of this transaction which is a first step of our activities in the province of Ontario. Our plan is to realize other transactions to pursue our business plan that includes an expansion in Ontario in the short term,” said Henri Petit, President and CEO of EMERGIA.
Emergia Inc., a Canadian-based company, owns and operates multi-purpose real estate properties, including retail, multi-residential, office and industrial buildings as well as land for future development.
Emergia Inc. (EMER) is down 6.25 per cent, trading at C$0.75 per share at 4:15 pm ET.