Update – TSXV-listed PROREIT Falls 6% From Near 52 Week Highs as Details $63M of Proposed Property Buys and Public Offering of $25M of Trust Units (CVE:PRV.UN)

PRO Real Estate Investment Trust (PRV-UN.V) has fallen 6% from near a 52 week high of $2.40, maybe on some profit taking, after it overnight Monday announced the proposed acquisition of 12 commercial properties for an aggregate purchase price of $63.3 million, representing an implied weighted average capitalization rate of 7.4%. In connection with the acquisitions, the REIT has entered into an agreement to sell to a syndicate of underwriters, on a bought deal basis, 11.2 million trust units at a price of $2.25 per unit for gross proceeds of approximately $25.2 million.

The REIT has also granted the underwriters an over-allotment option to purchase up to an additional 1,680,000 units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the offering. The REIT intends to use the net proceeds from the offering to partially fund the acquisitions, to fund expansion and redevelopment initiatives at new and existing properties, to repay certain indebtedness and for general business and working capital purposes. The offering is expected to close on or about October 18, 2016 and is subject to customary conditions, including regulatory approval. The companysaid: “Upon closing the Offering, based on the current trading price of the Units and taking into consideration the Class B LP Units, the REIT will see its market capitalization exceed $100 million for the first time, while reducing our leverage.”

The stock decreased 5.49% or $0.13 on September 27, hitting $2.24. About 579,310 shares traded hands or 658.02% up from the average. PRO REAL ESTATE INVESTMENT TRUST (CVE:PRV.UN) has risen 6.00% since August 29, 2016 and is uptrending. It has underperformed by 5.93% the S&P500.

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