Canadian Net Announces the Closing of Its Private Placement of Convertible Debentures
Not for Distribution to United States Newswire Services or for Dissemination in the United States
MONTRÉAL, Dec. 01, 2025 (GLOBE NEWSWIRE) -- (TSX-V: NET.UN) Canadian Net Real Estate Investment Trust (“Canadian Net” or the “REIT”) is pleased to announce the closing of a non-brokered private placement (the “Private Placement”) of unsecured convertible debentures of Canadian Net (the “Convertible Debentures”).
Under the Private Placement, the REIT issued $4.0 million in principal amount of Convertible Debentures. The Convertible Debentures will mature on December 1, 2030, bear an annual interest rate of 7.0% payable semi-annually, and are convertible into units of Canadian Net (the “Units”) at a conversion price of $6.75 per Unit (the “Conversion Price”). Canadian Net will have the right to redeem the Convertible Debentures on or after December 1, 2028 if the closing price of the Units on the TSX Venture Exchange (the “TSX-V”) is greater than the Conversion Price for a period of forty-five (45) consecutive trading days.
The Private Placement remains subject to receipt of all regulatory approvals, namely final approval of the TSX-V. The Convertible Debentures and the Units issuable upon conversion of the Convertible Debentures will be subject to a four-month hold period under applicable Canadian securities laws.
The net proceeds from the Private Placement will be used for acquisitions by Canadian Net and associated transaction costs, repayment of a portion of the outstanding indebtedness under Canadian Net’s credit facilities, costs incurred in connection with the Private Placement and for working capital and general trust purposes. No finder’s fee is payable in connection with the Private Placement.
“We are pleased to announce a $4 million convertible debenture financing, which will support Canadian Net’s continued growth,” said Kevin Henley, President and CEO. “Since 2023, we have repaid over $9 million of convertible debentures through internally generated cash flow and targeted refinancing initiatives, while, at the same time, successfully executing our capital recycling program, which has created meaningful growth. This new debenture enhances our financial flexibility and positions us to capitalize on accretive acquisition opportunities while continuing to reinforce the REIT’s solid balance sheet.”
The securities described herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Canadian Net – Canadian Net Real Estate Investment Trust is an open-ended trust that acquires and owns high-quality triple net and management-free commercial real estate properties.
Forward-Looking Statements – This press release contains forward-looking statements and information as defined by applicable securities laws. Canadian Net cautions readers that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated in such statements. Such risks, uncertainties and other factors include the risk that Canadian Net may not be able to obtain all necessary regulatory and stock exchange approvals, including final approval of the TSX-V, the risks related to economic conditions, the risks associated with the local real estate market, the dependence on the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity and the effects related to the adoption of new accounting standards, as well as other risks, uncertainties and factors to be described from time to time in the documents filed by Canadian Net with the securities commissions and similar regulatory authorities, including Canadian Net’s annual information form and management’s discussion and analysis. Canadian Net does not intend or undertake to update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.
For further information please contact Kevin Henley at (450) 536-5328.
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