CALGARY, Alberta–(BUSINESS WIRE)–Walton Edgemont Development Corporation (the “Corporation”) has
converted (the “Conversion”) its 8% unsecured, subordinated,
convertible, extendable debentures and related interest debentures
(collectively, the “Debentures“) and all unpaid accrued
interest thereon into Class B non-voting common shares of the
Corporation (“Class B Shares”). The Conversion was completed
effective September 30, 2016.
Pursuant to the Conversion, holders of Debentures received, for each
$1,000 amount of Debentures and outstanding interest thereon, 1,187.4132
Class B Shares. As a result, the approximate total $32.3 million of
Debentures and interest thereon outstanding was converted into
38,350,643 Class B Shares. There is now 41,470,783 Class B Shares
outstanding and no Debentures outstanding. Fractional Class B Shares
were issued on the Conversion rounded up to the nearest fourth decimal.
As each holder of Class B Shares prior to the Conversion were also
debenture holders at that time based on the proportions issued by the
Corporation under its original prospectus and private placement
offerings, the percentage of the total number of outstanding Class B
Shares held by each such shareholder immediately prior to the Conversion
did not change as a result of the Conversion.
Based on management’s current information, the forecasted net internal
rate of return (“IRR”) from the project is in the range of 3.0%
to 6.0%. The Conversion will have no impact on this forecast. The
forecasted IRR is based on achieving certain revenue targets,
maintaining construction schedules, the timely receipt of recoveries
from benefiting developments, third-party sales and commitments for
additional lots from the builders. Further material changes to the IRR
projection could occur due to changes in the aforementioned and other
No action is required on the part of the Debenture holders with respect
to the Conversion. The Conversion will be processed by the trustee of
the Debentures, Computershare Trust Company of Canada. As a result of
the issuance of the Class B Shares pursuant to the Conversion, the
Corporation has been discharged of all of its liability for the
repayment of the principal amount and unpaid interest accrued under the
Debentures. Notwithstanding that no action is required on the part of
Debenture holders with respect to the Conversion, the Corporation and
Computershare request that Debenture holders mail the certificates
evidencing their Debentures (including interest debentures) to
Computershare for cancellation at the following address:
Computershare Trust Company of Canada
600, 530 – 8th
Calgary, Alberta T2P 3S8
Attention: Corporate Trust
The Corporation is managed by Walton Asset Management L.P. and the
development of the Corporation’s Woodhaven project in Edmonton, Alberta
is managed by Walton Development and Management LP, both of which are
members of the Walton Group of Companies (“Walton”).
In March of 2017, each investor will receive, by mail, a T5 from
Computershare. The T5 will indicate the amount of interest that the
investor is required to report on its income tax as a result of the
interest allocated to it.
Walton is a multinational real estate investment, planning, and
development group concentrating on the research, acquisition,
administration, planning and development of strategically located land
in major North American growth corridors.
Walton has been in business for over 30 years and takes a long-term
approach to land planning and development. Walton’s industry-leading
expertise in real estate investment, land planning and development
uniquely positions Walton to responsibly transition land into
sustainable communities where people live, work and play.
Its communities are comprehensively designed in collaboration with local
residents for the benefit of community stakeholders. Its goal is to
build communities that will stand the test of time: hometowns for
present and future generations.
This news release, required by Canadian laws, does not constitute an
offer of securities, and is not for distribution or dissemination
outside Canada. This news release contains forward looking information,
and actual future results may differ from what is disclosed in this news
release. The risks, uncertainties and other factors that could influence
results are described in the prospectus and other documents filed with
Canadian securities regulatory authorities and available online at www.sedar.com.
Except as otherwise noted, all amounts are in Canadian dollars.
For media inquiries, please contact:
Tony Deegan, 1-403-750-2292