June 4, 2012
Delavaco Properties Completes Bought Deal Unit Offering for Total Gross Profits of US$25 Million
FORT LAUDERDALE, FLORIDA and TORONTO, ONTARIO--(Marketwire - June 4, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Mr. Andrew DeFrancesco, Chairman & CEO of Delavaco Properties Inc. (the "Company") is pleased to announce that the Company has completed a bought deal private placement offering of 7.5% Secured Notes due June 30, 2016 and Common Share Purchase Warrants (collectively the "Units") at a price of US$1,000 per Unit for total gross proceeds of US$25,000,000.
Each Unit consists of one US$1,000 principal amount secured note and 154 common share purchase warrants. Each common share purchase warrant entitles the holder to acquire one common share in the capital of the Company at a price of C$1.30 at any time within five years of the closing of the offering.
The offering was underwritten by a syndicate of investment dealers comprised of GMP Securities L.P. as co-lead underwriter and sole bookrunner, Canaccord Genuity Inc. as co-lead underwriter and Clarus Securities Inc. In addition, PowerOne Capital Markets Limited acted as an advisor to the Company.
The net proceeds from the offering will be used by the Company primarily to acquire additional distressed residential properties in South Florida, to redeem its July 2011 10% debentures and for general working capital purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Delavaco Properties Inc.
The Company is a real estate investment firm specializing in the acquisition and subsequent leasing of distressed residential real estate in the state of Florida. The Company currently holds a portfolio of over 400 residential properties in South Florida.
The Company was founded and is currently managed by Dallas Wharton and the principals of Delavaco Capital, a private equity firm headquartered in Fort Lauderdale, Florida with offices in Toronto, Canada and Bogota, Colombia
Delavaco Properties Inc.
Chief Executive Officer
2300 E. Las Olas Blvd.
Fort Lauderdale, FL 33301