Canadian Net Announces the Closing of Its Private Placement of Convertible Debentures

Executive Summary

• Canadian Net Real Estate Investment Trust closed a non‑brokered private placement issuing $4.0 million of unsecured convertible debentures.
• The debentures bear 7.0% annual interest (semi‑annual payments), mature on Dec 1 2030, and are convertible at $6.75 per unit; the REIT may redeem them after Dec 1 2028 under specified price conditions.
• Net proceeds will fund acquisitions, repay a portion of existing credit facility indebtedness, cover transaction costs, and provide working capital/general trust purposes.

Key Details

• Principal Amount: $4.0 million of convertible debentures issued.
• Maturity: December 1 2030.
• Interest Rate: 7.0% per annum, payable semi‑annually.
• Conversion Price: $6.75 per unit; conversion into units of Canadian Net.
• Redemption Rights: REIT may redeem on/after Dec 1 2028 if TSX‑V closing price > $6.75 for 45 consecutive trading days.
• Regulatory Conditions: Closing subject to final TSX‑V approval and a four‑month hold period under Canadian securities law.
• Use of Proceeds:
• Acquisitions by the REIT.
• Repayment of a portion of outstanding indebtedness under existing credit facilities.
• Transaction costs associated with the private placement.
• Working capital and general trust purposes.
• No Finder’s Fee payable in connection with the placement.
• CEO Quote: Kevin Henley highlighted that the financing supports continued growth, enhances financial flexibility, and positions the REIT to capitalize on accretive acquisition opportunities while reinforcing its balance sheet.

Notable Quotes

“We are pleased to announce a $4 million convertible debenture financing, which will support Canadian Net’s continued growth… This new debenture enhances our financial flexibility and positions us to capitalize on accretive acquisition opportunities while continuing to reinforce the REIT’s solid balance sheet.” – Kevin Henley, President & CEO.