NexLiving Communities closes $20M offering

NexLiving Communities closes $20M offering
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HALIFAX – (TSXV: NXLV) NexLiving Communities Inc. announced that it has closed today on its previously announced marketed offering of common shares. Pursuant to the Offering, the Company issued 100,000,000 shares at a price of $0.20 per share for gross proceeds of $20,000,000. The Offering was led by Echelon Capital Markets and CIBC Capital Markets as co-lead agents and co-bookrunners, on behalf of a syndicate of agents including Cormark Securities Inc., Desjardins Securities Inc., Scotia Capital Inc., Canaccord Genuity Corp., iA Private Wealth Inc. and Richardson Wealth Limited. The Company has granted the Agents an option to purchase an additional 15% of the shares sold under the Offering. The Over-Allotment Option may be exercised in whole, or in part, as determined by the Agents’ upon written notice to the Company at any time up to 30 days following the closing date of the Offering. In addition, as previously announced, NexLiving has agreed to a non-brokered private placement on the same pricing terms as the Offering, which has been upsized from $4,000,000 to $4,450,000. Closing of the Private Placement is subject to a number of conditions, including the approval of the TSX Venture Exchange.

NexLiving intends to use a portion of the gross proceeds to fund the equity requirements of the previously announced acquisition of ten recently constructed apartment properties comprised of 370 units in Moncton and Riverview, New Brunswick, for an aggregate purchase price of $72.6 million, subject to customary adjustments. The Acquisition is subject to certain closing conditions.

In consideration for their services, and pursuant to the terms of an agency agreement, dated November 19, 2021, among the Agents and the Company, the Company has paid a cash commission of $1,150,000.

NexLiving continues to execute its plans to acquire recently built or refurbished, highly leased multi-residential properties in bedroom communities across Canada. The Company aims to satisfy the needs of the newly emerging 55+ resident. The demographic that has changed the world is now changing the way residential rental apartments cater to their requirements. Their desire for community, along with service, quality and convenience has led to the emergence of the 55+ active living segment. Apartments are their next “home”, after years of owning they look forward to the carefree lifestyle provided through renting in a community of their peers. NexLiving intends to consolidate this emerging market niche. The Company currently owns 549 units in New Brunswick and Ontario. NexLiving has also developed a robust pipeline of qualified properties for potential acquisition. By screening the properties identified to match the criteria set out by the Company (proximity to healthcare, amenities, services and recreation), management has assembled a significant pipeline of potential acquisitions for consideration by the Company’s Board of Directors.

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