TORONTO--(BUSINESS WIRE)--Chemtrade Logistics Income Fund (TSX: CHE.UN) announced plans to actively pursue the sale of land at its North Vancouver, BC site through a sale-leaseback structure. The portion of the company’s North Vancouver operating facility that Chemtrade is offering for sale includes approximately 40 acres (16 hectares) of industrial zoned and rail served land. The remaining portion of the site is currently leased from the Vancouver Fraser Port Authority. Chemtrade plans to continue to operate its North Vancouver facility following the completion of the proposed sale-leaseback arrangement.
Chemtrade has launched a formal process to evaluate options for this transaction and cannot guarantee that any transaction will take place, nor provide guidance on the interest in or likelihood of any sale. Chemtrade will not issue any further updates until material terms of an agreement are reached or the process is terminated.
Scott Rook, President and CEO said, “We are excited about the financial flexibility that this opportunity could create for Chemtrade. The anticipated proceeds of the transaction could provide significant liquidity for investments in organic growth while also helping to reduce debt.”
RBC Capital Markets Real Estate Group and Colliers International will be assisting in the marketing and sale effort. For additional information about the property sale please contact the representatives below.
About Chemtrade
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America’s largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as “anticipate,” “continue,” “estimate,” “expect,” “expected,” “intend,” “may,” “will,” “project,” “plan,” “should,” “believe” and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: Chemtrade’s ability to sell its North Vancouver, BC property; its intention to lease back the land and to continue to operate its facility; the anticipated proceeds and any financial flexibility, liquidity, debt reduction or investment in organic growth that they may create. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the “RISK FACTORS” section of the Fund’s latest Annual Information Form and the “RISKS AND UNCERTAINTIES” section of the Fund’s most recent Management’s Discussion & Analysis.
Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon.
Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
