FREDERICTON, New Brunswick, May 08, 2018 (GLOBE NEWSWIRE) -- Trius Investments Inc. (“Trius” or the “Company”) (TSXV:TRU) is pleased to announce that it has reached an agreement whereby its wholly-owned subsidiary, TRU Investments LLC (“TRU LLC”), will assign its entire capital commitment (the “Capital Reduction”) in GS Chicago LLC (“GS Chicago”) in exchange for gross cash proceeds of US$500,000 (approximately CAD$640,000) (the “Refunded Proceeds”).
Trius, through TRU LLC, currently holds a 27.78% membership interest in GS Chicago, which interest was originally purchased for US$500,000. GS Chicago is an investor in the Chicago Pacific Founders Fund, L.P., a US-based private equity fund that invests in mid-market healthcare businesses.
Trius and TRU LLC negotiated the Capital Reduction with North American Management, LLC (“NAM”), the Manager of GS Chicago, to recover the Refunded Proceeds less a 5% administrative transaction fee charged by NAM. The ultimate result of the Capital Reduction is that Trius would receive net cash proceeds of US$475,000 upon closing, following receipt of regulatory approval, and would no longer own any membership interest in GS Chicago.
Joel Freudman, President and Chief Executive Officer of Trius, commented, “The Capital Reduction is an important step forward in our ongoing asset divestiture program. The Refunded Proceeds are significantly above what we expected to recover from GS Chicago and will strengthen our treasury.”
Both GS Chicago and NAM are associates of John Robertson, a Director of Trius. The Capital Reduction and related fee and matters were reviewed by the Company’s Special Committee and approved by its Board of Directors (with Mr. Robertson abstaining). The Capital Reduction remains subject to approval by the TSX Venture Exchange.
About Trius Investments Inc.
Trius owns interests in several real estate investments in the United States. Trius’ common shares trade on the TSX Venture Exchange under the symbol “TRU”.
For further information, please contact:
Joel Freudman
President and Chief Executive Officer
Trius Investments Inc.
Telephone: (647) 880-6414
Cautionary Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Generally, forward-looking information can be identified by the use of words and phrases such as “plans”, “expects”, “continues”, “estimates”, “intends”, “anticipates”, or “believes”, or variations of such words and phrases indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken or occur. Forward-looking information in this press release includes, without limitation, statements regarding the Capital Reduction and the proceeds therefrom, and regulatory approval. This forward-looking information consists of disclosure regarding possible events, conditions or results and is based on numerous assumptions regarding the Capital Reduction that management believes to be reasonable in the circumstances.
The forward-looking information in this press release is subject to a number of risks and uncertainties that may cause Trius’ actual results or performance to differ materially from those expressed or implied by such forward-looking information, including but not limited to: risks inherent in regulatory approval processes; inability to complete the Capital Reduction on favourable terms or at all; and other risks described in the Company’s continuous disclosure documents. There can be no assurances that the forward-looking information in this press release will prove to be accurate, as actual results and future events may differ materially from those anticipated by such information. Accordingly, investors should not place undue reliance on such forward-looking information. Trius does not undertake to update any forward-looking information in this press release, except as may be required by applicable securities laws.