NOVA NET LEASE REIT ANNOUNCES THE CLOSING OF THE SALE OF SUBSTANTIALLY ALL OF ITS ASSETS

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

TORONTO, Jan. 9, 2025 /CNW/ - Nova Net Lease REIT (the "REIT") (CSE: NNL.U) (OTCQB: NNLRF), a real estate investment trust with investments in cannabis-related properties in the U.S., announced today that the previously announced sale of Class A Units of Nova Net Lease Operating LLC, being substantially all of the REIT's non-financial assets, by Verdant Growth Properties Corp., a wholly owned subsidiary of the REIT, to Bluebird Real Estate Holdings, LLC for total gross proceeds of US$3.71 million has closed.

As previously announced, after providing for liabilities, unpaid transaction costs and administrative costs, the REIT expects to distribute its net assets to the REIT's unitholders and subsequently terminate the REIT in accordance with the REIT's declaration of trust in the first quarter of 2025. The REIT expects to issue a future press release with the estimated value of the liquidating distribution once it can be reliably estimated. 

Additional information regarding the transaction can be found in the REIT's management information circular dated November 15, 2024 at www.sedarplus.ca.

About Nova

Nova Net Lease REIT is a cross-border real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario to hold investments in cannabis-related properties located in the United States through its operating partnership. With the sale of its operating partnership completed, the REIT will begin the process to terminate.

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to the anticipated benefits of the transaction to the REIT's unitholders (including the liquidating distribution), and the termination of the REIT. There can be no assurance that the liquidating distribution will be completed, or that it will be completed on the terms and conditions contemplated in this press release.

The REIT has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, financial performance, business strategy and financial needs, including, that the unit purchase agreement for the transaction will not be amended; and all conditions precedent to completing the transaction will be met.

Although the forward-looking statements contained in this press release are based upon assumptions that senior officers of the REIT believe are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the REIT's control, that may cause the REIT's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those identified in the REIT's materials filed under the REIT's profile at www.sedarplus.ca from time to time.

The forward-looking statements made in this press release relate only to events or information as of the date hereof. Except as required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE Nova Net Lease REIT

For further information, please contact: Stacy Riffe, Chief Executive Officer & Chief Financial Officer, Nova Net Lease REIT, Tel: [phone]