CIM Int'l faces risk of losing CIM Mackenzie investment CIM Int'l faces risk of losing CIM Mackenzie investment
2019-10-01 09:00 MT - News Release
Mr. Jerry Feng reports
CIM INTERNATIONAL GROUP INC. ANNOUNCES PROBLEMS IN CIM MACKENZIE CREEK LIMITED PARTNERSHIP
CIM International Group Inc.'s investment in CIM Mackenzie Creek LP may be in jeopardy.
The Company holds 10,000,000 Class A Limited Partnership Units in the capital of Mackenzie Creek LP (the "Units"). The Units have a redemption value of $10,000,000.00 and are entitled to priority distributions of $6,000,000.00. To date, the Company has received $4,000,000.00 of the $6,000,000.00 of priority distributions.
Mackenzie Creek LP's main asset is its 49% ownership interest in each of CIM Development (Markham) LP and CIM Commercial LP (collectively, the "Beneficial Owners"), the beneficial owners of the residential and commercial development project located at 9900 Markham Road, Markham, Ontario known as the Mackenzie Creek Project.
Mackenzie Creek LP previously entered into a put option agreement with the other limited partner (the "Other Limited Partner") of the Beneficial Owners pursuant to which the Other Limited Partner is claiming a right to sell all of the underlying securities of the Beneficial Owners and related parties for a value that the Mackenzie Creek LP believes is significantly less than fair market value.
The Company has been advised that Mackenzie Creek LP opposes the sale; however, if the proposed sale is completed, the Company could lose its entire investment in Mackenzie Creek LP. The Company is seeking legal advice on its position and intends to respond to this situation to the full extent of its legal rights to protect its interest and investment in Mackenzie Creek LP. The Company will provide an update as additional information becomes available.
About CIM International Group Inc.
CIM International Group Inc. is a Canadian company headquartered in the greater Toronto area and is classified on the CSE as a Diversified Industries company engaged in real estate development investment and in mineral resources exploration and development in Canada. The primary focus of the Company is to seek additional attractive residential real estate development opportunities in the Toronto area, mineral resource exploration and development properties in Canada, and other attractive technology based business investment opportunities in Canada on an active and passive ownership basis.
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