CALGARY, Alberta--(BUSINESS WIRE)--Walton Edgemont Development Corporation (the “Corporation”) is pleased to announce that it has filed the final prospectus dated June 27, 2011 with the securities regulatory authorities in all provinces and territories in Canada for its initial public offering of a maximum of 3,000,000 Units at a price of $10.00 per Unit for gross proceeds of $30,000,000. Each Unit is comprised of $7.50 principal amount of 8% unsecured, subordinated, convertible, extendable debentures (the “Debentures”) and one Class B non-voting common share of the Corporation having a price of $2.50 (the “Shares”).
The Corporation has been established to provide investors with the unique opportunity to participate in the returns available from development of the 198.8 acre Edgemont Properties (the “Properties”) located in Edmonton, Alberta.
The Corporation believes that the Properties are strategically located and that investors can benefit from this development opportunity. The Corporation’s investment objectives are to (i) preserve the capital investment of the purchasers in the Units; (ii) make annual cash distributions on the Units (comprised of payments of interest and/or principal on the Debentures and/or dividends or other distributions on the Shares) beginning in September 2012 until the completion of the project, which is anticipated to be in December 2016; and (iii) achieve a net internal rate of return of 13.5% on the $10.00 purchase price of the Units under the offering from the cash distributions referred to in (ii) above.
The Corporation will be managed by Walton Asset Management L.P. and the development of the Properties will be managed by Walton Development and Management L.P., both of which are part of the Walton Group.
The syndicate of agents for this offering is being led by CIBC and BMO Capital Markets, and is further comprised of Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Laurentian Bank Securities Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Desjardins Securities Inc., Burgeonvest Bick Securities Limited and Mackie Research Capital Corporation.
About the Walton Group: In business for 30 years, the Walton Group currently manages approximately CAD $2.8 billion of pre-development and development real estate assets, including over 60,000 acres of land in Alberta, Ontario, Arizona, Texas, Georgia, Virginia and Maryland on behalf of investors around the world, including primarily North America, Europe and Asia and for the Walton Group. Headquartered in Calgary, the Walton Group has over 800 employees in Canada, the United States, Hong Kong, Singapore, Malaysia and Germany.
For more information about the Walton Edgemont Development Corporation Initial Public Offering, please visit www.sedar.com. For more information about the Walton Group, please visit www.Walton.com.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This offering is only made by prospectus, only to Canadian residents, and only as permitted by law. The prospectus contains forward looking information and actual future results may differ from the Corporation’s objectives. The risks, uncertainties and other factors that could influence actual results are described in the prospectus, which contains important detailed information about the securities being offered, and which investors should read before making an investment decision. Copies of the prospectus may be obtained from any dealer as may lawfully offer these securities or by contacting your financial advisor. The prospectus is also available online at www.sedar.com.