Emergia Announces Repayment of Debt Through Joint Ventures and Extension of its Current Private Placement Offering

MONTREAL, Nov. 11, 2020 (GLOBE NEWSWIRE) — (CSE: EMER) Emergia Inc. (the “Corporation” or “Emergia”) is pleased to announce that, as part of a thorough review of its assets started in 2019, in order to reach the segment allocation established in its business model, strengthen its balance sheet and reduce related high interest short-term debt, the Corporation has and intends to conclude joint ventures and sell certain assets.Until now, two transactions have been agreed to or completed. One transaction, completed last September, involves the creation of a joint venture to allow an early launch of a development project located in Dorval. The transaction considers an office revenue-generating property and related excess land to develop a multi-residential apartment building in a 50-50 joint venture with a third party, whereby the Corporation remains in charge of the management of the property and development project and also benefits of a 3-year option to buy back the project once completed.A second property, located in Gatineau, which is in its optimization phase, has also been the object of a transaction with a closing date scheduled for November 30, whereby the Corporation disposes of the said property into the same 50-50 joint venture as mentioned above, with the same option to buy back the property once fully leased.These transactions, done at arms’ length, result in a total disposal of assets of $17.1M and allow the Corporation to eliminate approximately $10.8M in short-term debt.“These transactions will reduce the financing costs of the Corporation as these short-term debts bear high interest rates. We continue to make progress in accordance with our strategic plan to improve our portfolio segment allocation and strengthen our balance sheet. Emergia’s transformation process has reached an interesting milestone which reinforces the Corporation’s execution of its business plan and its aim of creating value and growth of its assets and to generate profits,” said Henri Petit, President and CEO of Emergia.These actions are also expected to carry a positive impact on raising money and completing the previously announced Private Placement of up to $15,000,000 (the “Private Placement”), destined to reimburse its short-term debt and have working capital to pursue the execution of its business plan. The Private Placement consisted of up to 20,000,000 units of the Corporation (the “Units”) at a price of $0.75 per Unit, each Unit being composed of one Class A Common Share in the capital of the Corporation (a “Common Share”) and a Common Share purchase warrant (a “Warrant”) entitling the holder to purchase one Common Share at a price of $1.25 per Common Share until December 31, 2021.As of today, the Corporation closed part of the Private Placement for an amount of approximately $7M. Management pursued its discussions with investors in regards to the balance of $8M of its Private Placement, which has been extended until December 17, 2020 and the maturity date of the Warrant extended to December 31, 2022.Concurrently with the above, the Corporation is in discussions to implement senior financing allowing conversion of remaining  short-term debt in long-term debt and financing acquisitions and development of revenue generating properties already targeted or in the process of being developed by the Corporation. As a result, the Corporation’s stabilized revenues will be better-aligned with its business plan.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 state or jurisdiction in which such offer, solicitation or sale would be unlawful. All securities issued in connection with the Private Placement and the related Debt Settlement will be subject to a statutory hold period of four months plus one day from the date of issuance of the securities in accordance with applicable Canadian securities legislation. In addition, the securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.ABOUT EMERGIA INC.EMERGIA operates mainly in Canada in the development, acquisition and management of multi-purpose real estate, including retail, multi-residential, industrial, and office buildings as well as land for future development. The Corporation’s investment platform is based on an integrated, agile and efficient develop-to-own strategy that enables EMERGIA to benefit from development profits and the value-add while securing stable long-term returns.For more information, please visit www.emergia.com and www.sedar.com. EMER.CNSource: Emergia Inc.

For more Information, please contact:
Henri Petit
CEO
T: 1.888.520.1414 (Ext. 231)
E: [email protected]  

Forward-Looking InformationThis press release contains forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by looking for words such as “about”, “approximately”, “may”, “believes”, “expects”, “will”, “intend”, “should”, “plan”, “predict”, “potential”, “project”, “anticipate”, “estimate”, “continue” or similar words or the negative thereof or other comparable terminology. Such forward-looking information includes, without limitation, statements with respect to the effect of the COVID-19 pandemic on the Corporation’s financial condition, the anticipated closing of the Private Placement, business strategy and plans, and objectives of or involving the Corporation. The forward-looking information is based on certain key expectations and assumptions made by the Corporation, including expectations and assumptions concerning satisfaction of all conditions of closing, absence of exercise of any termination right and the timing and receipt of regulatory approval with respect to the Private Placement and the issuance of the private placement shares and the availability of capital resources. Although the Corporation believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the effect of the COVID-19 pandemic on the Corporation’s financial condition, the real estate industry, and society as a whole. the market for the common shares, volatility of market price for common shares and other risks generally attributable to the business of the Corporation. For additional information with respect to risks and uncertainties, refer to the annual MD&A of the Corporation for the year ended December 31, 2019 filed on SEDAR at www.sedar.com.THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.

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