1803299 Ontario Inc. acquires additional exchangeable limited partnership units of Nexus Real Estate Investment Trust

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Nov. 10, 2021 /CNW/ - On November 1, 2021 (the "Closing") 1803299 Ontario Inc. sold the property known municipally as 1040 Wilton Grove, London ON to the Nexus Real Estate Investment Trust (the "REIT").

As partial consideration for the property acquisition (the "Acquisition"), the REIT's subsidiary Nobel REIT Limited Partnership issued 3,303,275 class B limited partnership units (the "LP Units") with a value of $28,500,000.00 to 1803299 Ontario Inc. Each LP Unit is economically equivalent to one trust unit in the REIT (the "Units") and will entitle the holder thereof to receive distributions in cash from the REIT equal to the distributions that such holder would have received if it was holding one Unit. In addition, each LP Unit is exchangeable, at any time, at the option of the holder, for one Unit. Each LP Unit has attached to it one special voting unit (the "Special Voting Units", and with the Units, the "Voting Units") which provides the holder thereof with voting rights in respect of the REIT. The Special Voting Units are not listed on any exchange.

As a result of this transaction, 1803299 Ontario Inc. now beneficially owns an additional 3,303,275 Voting Units, representing approximately 5.49% of the outstanding Voting Units outstanding prior to the Acquisition. Prior to the Closing, 1803299 Ontario Inc. beneficially owned 8,586,407 Voting Units, representing approximately 14.26% of the issued and outstanding Voting Units before giving effect to the Acquisition. After giving effect to the Acquisition, the Acquirer now beneficially owns a total of 11,889,682 Voting Units, representing approximately 18.72% of the issued and outstanding Voting Units and an increase of approximately 38.47% over the previous number of Voting Units owned and controlled prior to the Acquisition.

There are restrictions on the transferability of the LP Units such that one-quarter of such LP Units shall not be transferable until the first day following the six (6) month anniversary of the Closing, one-quarter of such LP Units shall not be transferable until the first day following the twelve (12) month anniversary of the Closing, one-quarter of such LP Units shall not be transferable until the first day following the eighteen (18) month anniversary of the Closing, and the remaining such LP Units shall not be transferable until the first day following the twenty-four (24) month anniversary of the Closing. These restrictions on transfer apply even if the LP Units are exchanged into Units during the applicable periods.

The LP Units are held by 1803299 Ontario Inc. for investment purposes. The REIT and 1803299 Ontario Inc. have entered into two additional agreements of purchase and sale for the REIT to acquire additional properties located in London, Ontario. These transactions will not close until 2022/2023. 1803299 Ontario Inc. may further acquire or dispose of additional securities of the REIT or its subsidiaries in the future depending on market prices and other various factors including, without limitation, the REIT's financial position, the price levels of the Units, conditions in the securities markets and general economic and industry conditions, the REIT's business or financial condition, and other factors and conditions 1803299 Ontario Inc. deems appropriate and provided such acquisitions and dispositions may be completed in accordance with applicable securities laws.

This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues which requires a report to be filed under the REIT's profile on SEDAR (www.sedar.com) containing additional information respecting the foregoing matters. A copy of such report may be obtained by contacting Kathryn Barbon, Treasurer of 1803299 Ontario Inc. at 519.842.3363.

The address for 1803299 Ontario Inc. is:

500 Highway 3
Tillsonburg ON
N4G 4H8

1803299 Ontario Inc. is a corporation existing under the laws of the Province of Ontario, the principal business of which is the owning and managing of real property. 

SOURCE 1803299 Ontario Inc.