VANCOUVER, CANADA, November 28, 2016
~ Avigilon's sale and leaseback would secure facility while freeing cash ~
VANCOUVER, CANADA, November 28, 2016 /CNW/ - Avigilon Corporation ("Avigilon" or the "Company") (TSX: AVO), provider of trusted security solutions, today announced it has engaged CBRE Limited to market the Company's 9-storey office tower located in downtown Vancouver, Canada (the "Building") for a sale and leaseback (the "Proposed Transaction").
As contemplated, the Proposed Transaction would give Avigilon full use of the Building while reducing its debt, providing cash for general working capital purposes, and enhancing shareholder value. Avigilon purchased the Building in November, 2015 for CAD $42M, and is currently renovating and upgrading the facilities; CBRE has estimated the Building under the Proposed Transaction could be valued in excess of CAD $100M.
"Vancouver's real estate market is in a period of unprecedented growth," said Alexander Fernandes, Avigilon's Founder, President, Chief Executive Officer, and Chairman of the Board. "The Building is located in one of the most desirable downtown locations. This presents a great opportunity for Avigilon to secure the space needed to support our growing business and increase shareholder value."
Purchasers interested in participating in the Proposed Transaction should contact Kevin Nelson, CBRE Senior Vice President, High Technology Facilities Group, +1-604-662-5155.
Avigilon Corporation provides trusted security solutions to the global market. Avigilon designs, develops, and manufactures video analytics, network video management software and hardware, surveillance cameras, and access control solutions. To learn more about Avigilon, visit avigilon.com.
© 2016, Avigilon Corporation. ™ indicates a trademark of Avigilon Corporation. Other marks referred to herein are the property of their respective owners.
For further information:
Vice President, Capital Markets & Communications
T: (604) 629-5182
T: (604) 629-5182
Certain information and statements in this news release contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements normally contain words like 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should', 'ongoing' and similar expressions, and within this news release include any statements (express or implied) respecting: Avigilon's ability to complete the Proposed Transaction on acceptable terms, in a timely fashion, or at all; the effect that completion of the Proposed Transaction may have on shareholder value, and Avigilon's debt, cash and working capital positions; the estimated value of the Building under the Proposed Transaction; the suitability of the Building for Avigilon's intended occupancy; and the future growth of Avigilon's business.
Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances, including, without limitation, assumptions that: Avigilon will pursue the completion of the Proposed Transaction on terms acceptable to Avigilon, and that those terms will be within the range of terms and valuation currently anticipated by Avigilon; the potential effect that completion of the Proposed Transaction may have on shareholder value, and Avigilon's debt, cash and working capital positions, is relative to Avigilon's current share price and Avigilon's current financial position; the business and economic conditions affecting the commercial real estate market in Vancouver will continue substantially in their current state, and not be subject to a downturn, during the time period in which Avigilon pursues the Proposed Transaction; there will not be any unanticipated or unexpected impediments to the pursuit or completion of the Proposed Transaction; the factors associated with the suitability of the Building for Avigilon's intended occupancy will remain as they currently are; and the factors associated with the potential development and growth of the business of Avigilon will remain as they currently are.
Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to both: (i) Avigilon's business, as more particularly described in the "Risk Factors" section of Avigilon's Annual Information Form dated March 1, 2016, which is available under Avigilon's profile on SEDAR at www.sedar.com; and (ii) the commercial real estate market in Vancouver. Material risks and uncertainties applicable to the forward-looking statements set out herein include, but are not limited to, unforeseen events, developments or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. Furthermore, completion of the Proposed Transaction remains subject to, without limitation: Avigilon and a potential purchaser agreeing to acceptable terms; the purchaser securing necessary financing; completion of the purchaser's due diligence; approval from Avigilon's lending syndicate; and approval from Avigilon's Board of Directors. There can be no assurance that a Proposed Transaction acceptable to Avigilon will be consummated in a timely fashion or at all, nor that the value of the Building under a consummated Proposed Transaction will be as estimated in this news release. Although Avigilon has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Avigilon. Accordingly, readers should not place undue reliance on forward-looking statements.
Avigilon undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.
SOURCE Avigilon Corporation