Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB

RE:BOOM BREAKING NEWS SLAM ADMITS WOES

[TVR]

It is pretty clear that SLAM has quite a few problems in its own real estate portfolio (Hamilton, BC,  and probably others) beyond its investment in the SOT.UN REIT.  They DO NOT HAVE the financial capability to fix the REIT at the current time.  If they did we would not be in this position.  Only two outcomes I can see here for the REIT. Either Armoyan puts a deal together to keep the REIT operating and puts in further financing in some form, or the REIT ends up in a CCRA restructuring and if that is the case it is unlikely the common shareholders will receive anything after all the debt (over $1.2 billion if the high level of payables is included) is dealt with.  In a CCRA  restructuring it is likely a big part of the debt would be converted to equity at something around the current abysmal market price which would essentailly dilute the current common shareholders down to a very minimal share of the total equity.  Becoming increasingly likely the most value here is now in the tax loss that many shareholders who bought in the $3 to $6 range will be able to claim.  If SOT.UN goes to CCRA it is quite likely somebody like Artis or a pension fund will buy the whole REIT (or its assets) at a fire sale price.