Total
0
Shares
iLOOKABOUT (TSXV:ILA) closes $7.9M private placement
  • Real estate company Emergia (EMER) has revealed how it will reduce its high-interest short-term debt and strengthen its balance sheet
  • First, the company intends to conclude its joint ventures and sell certain related assets
  • This will result in disposal of roughly C$17.1 million in assets, and eliminate approximately $10.8 million in short-term debt
  • The company has also extended its current private placement offering until December 17, 2020
  • Emergia is up 8.33 per cent and is currently trading for 65 cents per share

Real estate company Emergia (EMER) has revealed how it will reduce its high-interest short-term debt and strengthen its balance sheet.

This forms part of the company’s thorough asset review, which it began in 2019 in order to reach the segment allocation established in its business model.

First, the company intends to conclude its current joint ventures and sell certain related assets. Thus far, Emergia has only agreed to or completed two transactions for the creation of a joint venture.

The transactions to dissolve these joint ventures and sell the related assets will result in the disposal of roughly C$17.1 million in assets. They will also allow the company to eliminate approximately $10.8 million of its short-term debt.

Emergia’s President and CEO, Henri Petit, said that these transactions will reduce the company’s financing costs as the short-term debts bear high-interest rates.

“We continue to make progress in accordance with our strategic plan to improve our portfolio segment allocation and strengthen our balance sheet,” he said.

“Emergia’s transformation process has reached an interesting milestone which reinforces the Corporation’s execution of its business plan and its aim of creating value and growth of its assets and to generate profit,” he added.

Emergia has also extended its current private placement offering for up to $15 million until December 17, 2020. Today, the company closed a tranche of the placement, for roughly $7 million in proceeds.

Management has pursued discussions with investors, with regards to the remaining $8 million balance of the private placement.

Emergia is up 8.33 per cent and is trading for 65 cents per share, as of 11:38am EST.


Subscribe


More From The Market Herald
Nexus REIT (TSXV:NXR.UN) adds to industrial portfolio

" Nexus REIT (TSXV:NXR.UN) adds to industrial portfolio

Nexus Real Estate Investment Trust (NXR.UN) has agreed to acquire several industrial properties in Ontario and Alberta.
RioCan - CEO, Edward Sonshine - The Market Herald Canada

" RioCan (TSX:REI.UN) signs new partnerships for development projects in Toronto and Montreal

RioCan Real Estate Investment Trust (REI.UN) has signed two new development partnerships and bought out its position in a third.
Black Diamond Group - Chairman and CEO, Trevor Haynes - The Market Herald Canada

" Black Diamond Group (TSX:BDI) outlines $35M 2021 capital spending plan

Black Diamond Group (BDI) has unveiled a C$35 million capital spending plan for 2021, focused primarily on supporting North American growth.
FirstService - CEO, Scott Tutterow - The Market Herald Canada

" FirstService (TSX:FSV) subsidiary grows through dual acquisition

FirstService (FSV) subsidiary Century Fire Protection has expanded its business through the acquisition of two fire protection companies.