NOVA NET LEASE REIT NOT FOR DISTRIBUTION TO
The Plan comprises senior management cash salary reductions, elimination of board of trustees' cash compensation, and other general and corporate expense reductions. The Board has also unanimously agreed to the suspension of the REIT's monthly cash distribution. These measures will aid in bringing the REIT to a cash-neutral position on a monthly basis. The Plan's components include the following:
- Reduction in cash salaries of senior management of
US$129,000 annually - Elimination of board of trustee cash compensation of
US$205,000 annually - Reduction in other general and corporate cash expenses of
US$175,000 annually - Suspension of its monthly cash distribution of
US$0.00225 per unit resulting in annual cash retention ofUS$404,000
Management and the board will receive a total of 352,000 units of the REIT for a cumulative value of
After careful review, the board unanimously determined that the measures taken represent a prudent strategy which provides the requisite liquidity while the REIT continues to pursue ongoing acquisition opportunities.
"We remain confident with the REIT's underlying business model and are taking necessary near term steps to preserve capital in light of a challenging capital markets environment" said
The Plan will be effective
Forward-Looking Statements
This press release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the REIT regarding future events, including statements concerning the ability of the REIT to achieve its stated investment objectives, any future acquisitions and the future success of the platform. In some cases, forward-looking statements can be identified by terms such as "may", "will", "could", "occur", "expect", "anticipate", "believe", "intend", "estimate", "target", "project", "predict", "forecast", "continue", or the negative thereof or other similar expressions concerning matters that are not historical facts.
These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any result expressed or implied by such forward-looking statements, including the risk factors set forth in the REIT's final Prospectus dated
Although forward-looking statements contained in this press release are based upon what management of NOVA believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. NOVA undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE
© Canada Newswire, source
