Taiga Announces Sale and Leaseback Transaction
BURNABY, BC, Nov. 29, 2013 /CNW/ - Taiga Building Products Ltd. (TSX: TBL & TBL.NT), ("Taiga" or the "Company") announces that it has signed an agreement with Korite Capital Corporation for the sale and leaseback of five of Taiga's distribution facilities for an aggregate purchase price of $20,000,000, subject to customary conveyancing adjustments. The agreement provides that, upon closing, Taiga will lease each of these facilities from the purchaser for an initial period of 20 years. Closing is subject to certain customary conditions for transactions of this nature including purchaser financing and due diligence.
The completion of the transaction is expected to occur in February 2014. Net proceeds are expected to be used for strategic and/or general corporate purposes.
Forward-Looking Information
This news release contains forward-looking information that reflects the current views and/or expectations of Taiga with respect to its performance, business and future events, including statements relating to the timing and expected completion of the sale and leaseback transaction with Korite Capital Corporation and expected use of proceeds derived therefrom. Forward-looking information is based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including assumptions relating to the ability of the Company and the purchaser to satisfy the conditions required in order to complete the sale and leaseback transaction and all related lease arrangements, including that the purchaser will waive all subject conditions in order to proceed with closing. Forward-looking information does not guarantee future performance and involves risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking information involves risks and uncertainties including, without limitation, that the purchaser will not waive subjects within the timeframe specified in the purchase and sale agreement or at all, that other conditions to closing the transaction will not be satisfied and that the Company will be unable to complete the transaction; the Company will be required to alter its use of proceeds depending on business and market conditions at the time of closing, and other risk factors listed from time to time in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking information, which are qualified in their entirety by this cautionary statement. Taiga does not undertake any obligation to release publicly any revisions to or updating any voluntary forward-looking statements, except as required by applicable securities law.
SOURCE: Taiga Building Products Ltd.
For further information regarding Taiga, please contact:
Mark Schneidereit-Hsu
CFO and VP, Finance & Administration
Tel: 604.438.1471
Email: [email protected]
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