CALGARY, Alberta--()--Walton Westphalia Development Corporation (the “Corporation”) announces that it has completed its twelfth closing on its previously announced private placement offering.
The Corporation closed on aggregate proceeds of $693,980 and issued 69,398 Units at a price of $10.00 per Unit. Each Unit is comprised of $5.00 principal amount of 8% unsecured, subordinated, convertible, extendable debentures (the “Debentures”) and one non-voting share of the Corporation having a price of $5.00 (the “Shares”).
The proceeds from this closing will be utilized by the Corporation and its U.S. subsidiary for working capital purposes and to repay a portion of the loan it received from affiliated entities to purchase interests in the approximately 310 acre “Westphalia” property located in Prince George’s County, Maryland, USA (the “Property”).
The Corporation will provide further updates as additional closings of the private placement occur.
The Corporation has been incorporated to provide investors with the unique opportunity to participate in the returns available on the residential and commercial development of the Property. The Corporation’s investment objectives are to (a) preserve the capital investment of the purchasers in the Units; (b) make annual cash distributions on the Units (comprised of payments of interest and/or principal on the Offering Debentures and/or dividends or other distributions on the Shares) beginning in June of 2013 until the final distribution of funds from the Project, which is anticipated to be in March of 2019; and (c) achieve a net internal rate of return of 15.0% on the $10.00 purchase price of the Units from the cash distributions referred to in (b) above.
The Corporation is managed by Walton Asset Management L.P., and the development of the Property is managed by Walton Development & Management (USA), Inc., both of which are part of the Walton Group.
The Walton Group is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. Walton’s expertise is the research, acquisition, management and development of strategically located land in major North American growth corridors. With over 68,000 acres of land under management, the Walton Group is one of North America’s premier land asset managers. Walton manages and/or owns land assets in Phoenix, Austin, Dallas, Atlanta, Charlotte, the Washington D.C. region, Ottawa, Toronto, Edmonton and Calgary.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This offering is only made by Offering Memorandum, only to Canadian residents, and only as permitted by law. This news release contains forward looking information, and actual future results may differ from the Corporation’s objectives. The risks, uncertainties and other factors that could influence actual results are described in the Offering Memorandum, which contains important detailed information about the securities being offered, and which investors should read before making an investment decision.