Walton Edgemont Development Corporation Converts its Debentures and Interest Debentures into Class B Shares Effective September 30, 2016

CALGARY, Alberta--()--Walton Edgemont Development Corporation (the “Corporation”) has converted (the “Conversion”) its 8% unsecured, subordinated, convertible, extendable debentures and related interest debentures (collectively, the "Debentures") and all unpaid accrued interest thereon into Class B non-voting common shares of the Corporation (“Class B Shares”). The Conversion was completed effective September 30, 2016.

Pursuant to the Conversion, holders of Debentures received, for each $1,000 amount of Debentures and outstanding interest thereon, 1,187.4132 Class B Shares. As a result, the approximate total $32.3 million of Debentures and interest thereon outstanding was converted into 38,350,643 Class B Shares. There is now 41,470,783 Class B Shares outstanding and no Debentures outstanding. Fractional Class B Shares were issued on the Conversion rounded up to the nearest fourth decimal.

As each holder of Class B Shares prior to the Conversion were also debenture holders at that time based on the proportions issued by the Corporation under its original prospectus and private placement offerings, the percentage of the total number of outstanding Class B Shares held by each such shareholder immediately prior to the Conversion did not change as a result of the Conversion.

Based on management’s current information, the forecasted net internal rate of return (“IRR”) from the project is in the range of 3.0% to 6.0%. The Conversion will have no impact on this forecast. The forecasted IRR is based on achieving certain revenue targets, maintaining construction schedules, the timely receipt of recoveries from benefiting developments, third-party sales and commitments for additional lots from the builders. Further material changes to the IRR projection could occur due to changes in the aforementioned and other factors.

No action is required on the part of the Debenture holders with respect to the Conversion. The Conversion will be processed by the trustee of the Debentures, Computershare Trust Company of Canada. As a result of the issuance of the Class B Shares pursuant to the Conversion, the Corporation has been discharged of all of its liability for the repayment of the principal amount and unpaid interest accrued under the Debentures. Notwithstanding that no action is required on the part of Debenture holders with respect to the Conversion, the Corporation and Computershare request that Debenture holders mail the certificates evidencing their Debentures (including interest debentures) to Computershare for cancellation at the following address:

Computershare Trust Company of Canada
600, 530 – 8th Avenue SW
Calgary, Alberta T2P 3S8
Attention: Corporate Trust

Additional Information

The Corporation is managed by Walton Asset Management L.P. and the development of the Corporation’s Woodhaven project in Edmonton, Alberta is managed by Walton Development and Management LP, both of which are members of the Walton Group of Companies (“Walton”).

In March of 2017, each investor will receive, by mail, a T5 from Computershare. The T5 will indicate the amount of interest that the investor is required to report on its income tax as a result of the interest allocated to it.

Walton is a multinational real estate investment, planning, and development group concentrating on the research, acquisition, administration, planning and development of strategically located land in major North American growth corridors.

Walton has been in business for over 30 years and takes a long-term approach to land planning and development. Walton’s industry-leading expertise in real estate investment, land planning and development uniquely positions Walton to responsibly transition land into sustainable communities where people live, work and play.

Its communities are comprehensively designed in collaboration with local residents for the benefit of community stakeholders. Its goal is to build communities that will stand the test of time: hometowns for present and future generations.

For more information about Walton Edgemont Development Corporation, please visit www.sedar.com. For more information about Walton, visit www.Walton.com.

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This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online at www.sedar.com. Except as otherwise noted, all amounts are in Canadian dollars.

Contacts

For media inquiries, please contact:
Walton Edgemont Development Corporation
Tony Deegan, 1-403-750-2292
tdeegan@walton.com

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