Post by
YellowBrickRoad on Nov 23, 2018 9:43pm
Proposed Amendment to Declaration of Trust
Although the effect of the proposed amendments to the Declaration of Trust is to provide the Board of Trustees with the authority to effect, without a further unitholder vote, a sale of all or substantially all of the assets of the REIT, there is no change to applicable securities or other laws that apply to the REIT.
The current thinking of the Board is that a sale of the properties in Quebec may be in the best interests of the REIT if one or more attractive transactions can be secured. If that were to happen, the Board would consider another special cash distribution. In those circumstances, the Board would likely also consider a possible sale of either the REIT itself or its remaining properties as the costs of maintaining a public company become increasingly burdensome as the size of the business decreases.
The proposed amendment to the Declaration of Trust must be approved by 66 2/3% of the units voted at the unitholder meeting on December 10, 2018. The Board of Trustees of the REIT, made up of 5 independent trustees and the REIT’s CEO, have concluded that the proposed amendment to the Declaration of Trust is in the best interests of the REIT and unanimously recommend that unitholders vote for the special resolution. Three of the REIT’s largest unitholders, with an aggregate of 56.4% of the outstanding units, have agreed to vote in favour of the amendment.