WINNIPEG, MB, July 4, 2024 /CNW/ – Lanesborough Real Estate Investment Trust (“LREIT“) (TSXV: LRT.UN) today provided an update with regards to its plans for future operations following the failure by the holders of its trust units (“Unitholders“) to approve a special resolution approving the sale of all of its properties at the annual general and special meeting of Unitholders held on June 27, 2024. As previously announced, as of March 31, 2024, LREIT had total liabilities of $201,055,897, including $159,169,309 owing to related parties 2668921 Manitoba Ltd. and Shelter Canadian Properties Ltd. (“Shelter“) and has no prospect of raising the capital to repay these amounts.
Effective immediately, Shelter will no longer provide most administrative services to LREIT due to the inability of LREIT to pay amounts outstanding to Shelter. Accordingly, LREIT will no longer be making ongoing public disclosure, including filing financial statements, in accordance with applicable securities laws or paying the fees of the TSX Venture Exchange (“TSXV“). As a result, management of LREIT expects that LREIT will likely be issued a cease trade order with respect to trading in its securities by The Manitoba Securities Commission or other securities regulatory authorities in the near future. LREIT also anticipates that trading in its securities will be halted by the TSXV and its listing moved to the NEX board of the TSXV.
LREIT also announced that Charles K. Loewen and Earl S. Coleman have each resigned as independent trustees of LREIT. Accordingly, Arni Thorsteinson is now the sole trustee of LREIT.
Subject to the financial constraints of LREIT noted above, Management of LREIT plans to continue to operate LREIT’s business in the ordinary course to the extent possible.
ABOUT LREIT
LREIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol LRT.UN (Trust Units). For further information on LREIT, please visit our website at www.lreit.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release are “forward-looking statements” that reflect the expectations of management regarding LREIT. Readers are cautioned not to place undue reliance on forward-looking information. All statements other than statements of historical fact contained herein are forward-looking statements. Forward looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Forward looking statements involve significant risks and uncertainties. A number of factors that could cause actual results to differ materially from the results discussed in forward-looking statements are discussed in LREIT’s management discussion and analysis for the three month period ended March 31, 2024 available on SEDAR+ at www.sedarplus.ca. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, LREIT cannot assure investors that actual results will be consistent with these forward-looking statements.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. Forward-looking statements are made as of the date hereof, or such other date specified in such statements, and neither LREIT nor any other person assumes any obligation to update or revise such forward-looking statements to reflect new information, events or circumstances, except as expressly required by applicable securities law.
SOURCE Lanesborough Real Estate Investment Trust
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