CHC Realty Capital Corp. Announces Shareholder Approval for Name Change and Share Consolidation

27/01/2015     Page view:1214

TORONTO, ONTARIO--(Marketwired - Jan. 27, 2015) - CHC Realty Capital Corp. ("CHC" or the "Company") (TSX VENTURE:CHC) wishes to announce that at its special meeting of shareholders held today, shareholders approved a change of the Company's name to "CHC Student Housing Corp." or such other similar name as may be determined by CHC's board of directors, and the consolidation of the Company's common shares on the basis of one post-consolidation share for up to every 85 pre-consolidation shares, as determined by CHC's board of directors. 100% of the shares represented at the meeting were voted in favour of the name change and 99.34% of the shares represented at the meeting were voted in favour of the share consolidation.

At present, the Company has 198,495,610 common shares issued and outstanding. If the proposed consolidation is effected on the basis of the maximum 85 for one consolidation ratio approved by shareholders, there would be 2,335,242 common shares issued and outstanding. CHC's board of directors believes that it is in the best interests of the Company to reduce the number of outstanding common shares by way of the proposed share consolidation, and that the potential benefits of the consolidation include: (i) greater investor interest as a higher post-consolidation share price could help generate interest in CHC among investors, as a higher anticipated share price may meet investing guidelines for certain institutional investors and investment funds that may be prevented under their investing guidelines from investing in the shares at their current price; (ii) improved trading liquidity as increased interest from investors may ultimately improve the trading liquidity of the shares; and (iii) raising additional capital at a higher price per share as the higher anticipated price of the post-consolidation shares may allow CHC to raise additional capital through the sale of additional shares at a higher price per share than would be possible in the absence of the consolidation.

Further information regarding the proposed name change and share consolidation is found in the management information circular of the Company dated January 2, 2015 prepared in connection with the Company's special meeting of shareholders, which is available under CHC's profile on SEDAR at

The name change and share consolidation are subject to acceptance by the TSX Venture Exchange.

The Company will provide additional details once it determines to effect the name change and share consolidation, including the specific ratio for the share consolidation and the effective date on which the common shares of CHC will commence trading on a consolidated basis. It is anticipated that change in the Company's name will be effected at the same time as the share consolidation. Letters of transmittal will also be mailed to all registered shareholders in due course for the purposes of obtaining new share certificates reflecting the name change and share consolidation.

About CHC Realty Capital Corp.

CHC Realty Capital Corp. is an owner and operator of student housing properties which is focused on acquiring high quality properties in close proximity to universities and colleges in primary and well understood secondary markets in Canada.

Neither the TSXV Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

2010 Meantimewire,Incorporated.All rights reserved.