AIP Realty Trust Closes First Tranche of Non-Brokered Offering of Preferred Units

Executive Summary

• AIP Realty Trust completed the first tranche of a non‑brokered private placement, issuing 7,260,000 Series B Convertible Preferred Units at US$0.50 each for gross proceeds of US$3.63 million.
• Net proceeds will fund costs associated with AIP’s proposed business combination with AllTrades Industrial Properties, LLC, including audit, legal, documentation and due‑diligence expenses.
• The financing includes a hold period of four months and one day; a second tranche (up to an additional US$3.37 million) is expected to close in the coming weeks pending TSXV approval.

Key Details

• Units Issued: 7,260,000 Preferred Units – Series B Convertible
• Price per Unit: US$0.50
• Aggregate Gross Proceeds (first tranche): US$3,630,000
• Maximum Authorized Units under Financing: 14,000,000 (up to US$7,000,000 total)
• Conversion Rights: Each Preferred Unit convertible into one Class A Trust Unit at no cost, exercisable on:
• 5 business days after notice of conversion,
• Closing of a merger/acquisition/plan of arrangement/restructuring/reverse takeover,
• At the trustees’ option, or
• By April 30 2027.
• Voting & Distribution Rights: One vote per Preferred Unit; preferential right to allocations, advances/distributions, and residual assets on dissolution.
• Hold Period: Four months and one day from issuance for each Preferred Unit in the first tranche.
• Finder’s Fees Paid: US$152,000 to arm‑length third parties assisting with placement.
• Related Party Participation: DKAM Capital Ideas Fund LP ( >10% holder) purchased units; transaction deemed a “related party transaction” but did not exceed 25 % of market cap, so no formal valuation or minority approval required.
• Use of Proceeds: Funding costs for the AllTrades Transaction – audit fees, legal fees, documentation preparation, and due‑diligence expenses.
• Regulatory Conditions: Completion of second (or additional) tranches subject to TSXV approval.

Notable Quotes

(No direct quotes were provided in the release.)