Tickers: XCNQ:DLMA
Tags: Real Estate, Mining
Montreal, Friday, July 16th, 2018 / TheNewswire / - (CSE:DLMA) The Delma Group Inc. ("Delma" or the "Company") is pleased to announce that its wholly-owned subsidiary, Delma Real Estate Corporation has closed a transaction on July 12, 2018 with Gestion H. Petit Inc. ("HPH") and four of its operating subsidiaries (namely GHP Real Estate Corporation Inc., Emergia Real Estate Inc., Aux 22 Sentiers Inc., and 9335-5709 Quebec Inc.) (the "Acquired Companies"). Delma purchased all of the issued and outstanding shares of the Acquired Companies for a net price of $14.9M paid by the issuance of Delma common shares, at a price of $6.00 per share. (the "Transaction"). Over the last few months, Delma acquired from the Acquired Companies a real estate portfolio worth approximately $50M.
"This transaction is perfectly in line with the Company's plan as it includes interesting revenue generating assets and short term development properties in different regions of the Province of Quebec, including the Montreal, Quebec City, Gatineau and the Eastern Townships areas" stated Francois Castonguay, the president of the Company.
The new acquisitions by Delma since its listing on the CSE in March 2018 increase the Company's total assets to over $136 million. Several more acquisitions are planned and will be forthcoming.
Mr. Henri Petit, Director and Secretary of the Company held the majority of the purchased shares in the capital of the Acquired Companies. As such, the Transaction constitutes a "related party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transaction ("MI 61-101"). The Company is exempted from obtaining minority approval and a formal valuation for the issuance of shares to HPH pursuant to Sections 5.5(a) and 5.7(a) of MI 61-101, respectively, since at the time of the Transaction, neither the fair market value of the subject matter of, nor the fair market value consideration for the transaction, exceeded 25% of the Company's market capitalization.
The DELMA Group is a Montreal-based company specialized in the development, owning and operating of real estate assets in Canada, the U.S. and Europe. Delma is a publicly-traded company on the Canadian Security Exchange (CSE) since late March 2018, and puts forward an agile and efficient investment platform aimed at optimizing yield while mitigating risks through its various subsidiaries: DELMA Real Estate Corporation (DREC), DELMA Hospitality Corporation (HDC), and DELMA Management Services Corporation (DMSC).
For more information, please visit www.delma.ca. DLMA.CN
Source: The Delma Group Inc.
For more Information, please contact:
Vid Wadhwani
VP- Investor Relations
Tel: 604-729-7077
David Carkeek
VP- Investor Relations
Tel: 604-760-9212
Copyright (c) 2018 TheNewswire - All rights reserved.
