Halifax based company raising millions to boost rentals

Killam Properties Inc. is seeking to raise more than $22 million to increase the acquisition of residential rental properties in Atlantic Canada. The Halifax-based company will also use the projected revenue to pay down some debt and position the company to borrow additional funds as required, says Charlottetown businessman Tim Banks, a director in the company.

He said the $22-million private placement will be used to pursue growth strategy. The agreement with Desjardins Securities Inc., subject to regulatory approval, will see the issue of up to 21,000,000 common shares of Killam at a price of $1.05 per common share for gross proceeds of $22,050,000.

The company expects the closing of the financing on or about Nov. 14, when the proceeds from the financing will be released to Killam. Proceeds from the financing will be used to repay its acquisition credit facility from Brascan Financial Corporation, to fund future acquisitions and for general working capital purposes, said Banks.

Killam securities will not be registered under the United States Securities Act and may not be offered or sold in the U.S. Killam currently owns 1,561 apartment and manufactured home units and is focused on the acquisition, re-development and management of multi-family residential rental properties and manufactured home communities in Atlantic Canada and adjacent markets.