TORONTO, ONTARIO--(Marketwired - May 8, 2017) - CHC Student Housing Corp. ("CHC" or the "Company") (TSX VENTURE:CHC) announces that it has been granted a management cease trade order (the "MCTO") by its principal regulator, the Ontario Securities Commission (the "OSC"). As previously announced on May 1, 2017, the Company's application for the MCTO resulted from the Company's inability to file its audited annual financial statements (the "Financial Statements"), management's discussion and analysis and related certifications for the fiscal year ended December 31, 2016 (the "Required Records") on or before May 1, 2017, as required under applicable securities laws. The MCTO restricts trading in securities of the Company by certain insiders of the Company until such time as the Required Records have been filed by the Company and the MCTO is no longer in effect. The MCTO does not affect the ability of shareholders who are not insiders of the Company to trade their securities.
As CHC has also previously announced, it is proceeding with a non-brokered private placement (the "Private Placement") to raise a minimum of $600,000 and a maximum of $1,000,000 through the issuance of a minimum of 342,857 common shares and a maximum of 571,429 common shares at a price of $1.75 per share. The Private Placement is scheduled to close on or about May 11, 2017. Following the completion of the Private Placement, the Company intends to have its auditors complete the audit of the Financial Statements as soon as possible and expects to be able to file the Required Records no later than May 19, 2017.
The Company confirms that it intends to satisfy the provisions of the alternative information guidelines found in section 10 of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults and issue bi-weekly default status reports for so long as the delay in filing the Required Records is continuing, each of which will be issued in the form of a press release. The Company is not subject to any insolvency proceedings nor is there in other material information concerning the affairs of the Company that has not been generally disclosed.
About CHC Student Housing Corp.
CHC Student Housing Corp. is Canada's only publicly traded company offering high-quality purpose-built student housing properties strategically located on campus or in close proximity to universities and colleges providing students a safe and secure living environment, affordable prices and high-quality amenities. CHC is focused on student housing in primary and well understood secondary markets in Canada.