TORONTO, July 08, 2020 (GLOBE NEWSWIRE) — Skyline Investments Inc. (the “Company” or “Skyline”) (TASE: SKLN) respectfully announces the following:
Further to the description in the Company’s Board of Directors Report for 2019 (Reference No. 2020-01-027372) and further to the description in the supplementary immediate report dated April 14, 2020 (Reference No. 2020-01-038355) an amendment to the conditional agreement dated March 10, 2020 (the “Amendment”) for the sale of the Company’s Port McNicoll site (the “Site”), was signed on July 8, 2020 (the “Transaction”). As stipulated in the Amendment, the Buyer will waive its due diligence condition and the sale price of the Site will be CAD $33.5 million of which CAD $1 million will be used to cover legal and sale brokerage fees. In accordance with the Amendment, the Buyer paid the Company a non-refundable deposit of CAD $200 thousand (in addition to a deposit of CAD $100 thousand which was already paid to the Company and will consider a non-refundable deposit as well), and will need to pay an additional deposit of CAD $700 thousand on the closing of the Transaction. The closing date of the Transaction is scheduled to occur on August 17, 2020. After completion of this Transaction no material gain or loss will be recognized.
As part of the Transaction, the Company will extend a vendor take-back loan to the Buyer in the amount of CAD $32.5 million (the “New Vendor Take-Back Loan”) to be repaid by the Buyer as follows:
– Five unequal installments as follows: (a) CAD $1 million to be paid in October 2020; (b) CAD $3 million to be paid in December 2020; (c) CAD $1 million to be paid in February 2021; (d) CAD $1 million to be paid in March 2021; (e) CAD $1.5 million to be paid in June 2021;
– Approximately CAD $12.24 million, to be paid in thirty-five equal installments (over the course of February 1, 2021 to December 31, 2023) each in the amount of CAD $349,713;
– CAD $12.76 million to be paid on the loan repayment date scheduled for December 31, 2023.
A total of CAD $25 million of the New Vendor Take-Back Loan will bear an interest of 1% (to be calculated as of January 1, 2021) which will be paid in monthly installments starting February 1, 2021.
Skyline is a Canadian company that specializes in hospitality real estate investments in the United States and Canada. The Company currently owns 18 income-producing assets with 3,301 hotel rooms and 89,869 square feet of commercial space, and development lands with rights for approximately 2,315 residential units located in three main areas north of Toronto, Canada.
The Company is traded on the Tel Aviv Stock Exchange (ticker: SKLN) and is a reporting issuer in Canada.
For more information:
Rob Waxman, CPA CA, CFA
Chief Financial Officer
1 (647) 207-5312
VP, Asset Management & Investor Relations
1 (416) 368-2565 ext. 2222
This report contains forward-looking statements (within the meaning of applicable securities laws) relating to the Company’s business. In some cases, forward-looking statements can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. The Company’s assessments regarding the Transaction constitute forward-looking statements. Forward-looking statements involve a number of known and unknown risks and uncertainties, many of which are outside of our control that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks detailed in our public filings. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this report and, except as expressly required by applicable law, we undertake no obligation to update any forward-looking or other statements herein whether as a result of new information, future events or otherwise.