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Caravan Announces Binding Agreement For Sale of Principal Property

Friday, 26 July 2024 01:30 PM

CALGARY, AB / ACCESSWIRE / July 26, 2024 / Caravan Trailer Lodges of Alberta Ltd. (the "Company" or "Caravan") is pleased to announce the entering into of a binding agreement (the "Agreement") for the purchase and sale of the Company's 10.25 acre property (the "Property") for an aggregate purchase price of $9,000,000 plus GST, subject to certain closing adjustments and payment of agent fees. The purchaser of the Property has confirmed completion of its due diligence and has delivered deposits in the aggregate amount of $900,000, which are being held in trust pending closing. Completion of the sale is subject to the representations of the parties made in the Agreement being true and correct at closing, along with satisfaction of certain closing conditions, most notably being receipt of shareholder and Court approval in respect of the Property sale (each of which are to be obtained prior to September 18, 2024 (subject to extension)).

As the sale of the Property constitutes a sale of "all or substantially all of the assets" of Caravan, the sale requires approval by not less than 66â…”% of the votes cast by shareholders at a meeting thereof. It is expected that shareholders will also be asked to approve the winding up and dissolution of the Company at the same meeting, which will also require approval of 66â…”% of the votes cast. The Company is in the process of securing a location for such a shareholder meeting, which is expected to occur on or before September 18. Once determined, notice of the meeting will be provided to all duly registered shareholders of the Company and meeting materials will be sent to such shareholders in accordance with applicable delivery requirements, together with copies of the Company's audited financial statements for the 2023 and 2022 financial years. The Company will also be requesting final Court approval of the Agreement and the sale of the Property, which it will seek to obtain prior to September 18, 2024.

The sale of the Property represents the culmination of many months of sales efforts and negotiations by the Board, with input from its listing agent and completion of a fulsome marketing process. The Board believes that completion of the sale pursuant to the Agreement is in the best interests of the Company and looks forward to completion of the transaction on a timely basis.

Forward Looking Statements

Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Calum Stewart
Chairman, President and Director
[email protected]

Legal Inquiries can also be directed to Caravan's independent counsel, Tingle Merrett LLP, attention: Brett Code K.C. (ph: (403)571-8014) (re litigation matters); or Paul Bolger (ph: (403)571-8006) (re corporate matters).

SOURCE: Caravan Trailer Lodges of Alberta Ltd.

Topic:
Company Update
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