Business News • MarketWire • Calloway Real Estate Investment Trust Announces Simplification of Its Corporate Structure |
Calloway Real Estate Investment Trust Announces Simplification of Its Corporate Structure |
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Calloway Real Estate Investment Trust Announces Simplification of Its Corporate Structure
TORONTO, ONTARIO--(Marketwired - Dec. 19, 2014) - Calloway Real Estate Investment Trust ("Calloway" or the "REIT") (TSX:CWT.UN) announced today that it will complete a reorganization (the "Reorganization") before the end of the year in order to enhance its flexibility in continuing to comply with the restrictions governing its income trust status as a real estate investment trust for purposes of the Income Tax Act (Canada) (the "Tax Act"). As part of the Reorganization, which will simplify its corporate structure by eliminating its subsidiary trust, Calloway Holdings Trust, on December 31, 2014, Calloway will make a distribution to its holders of units (such holders, "Calloway Unitholders" and such units of Calloway, "Units") in the form of trust units of Calloway MF Trust ("MFT"), a subsidiary trust of Calloway's created for purposes of the Reorganization. Each Calloway Unitholder will receive a portion of a MFT trust unit ("MFT Unit") for every Unit of Calloway held by that Unitholder. These MFT Units will be immediately redeemed by MFT and the redemption price in respect of such MFT Units (except for one MFT Unit held by Calloway) will be satisfied by the distribution of additional Units of Calloway to the Unitholders whose MFT Units are redeemed. Following the redemption, the outstanding Calloway Units held by the Calloway Unitholders will be consolidated on a basis such that, following such consolidation, the number of Calloway Units outstanding will be equal to the number of Calloway Units outstanding immediately before the Reorganization. Unitholders do not have to take any action in connection with the Reorganization and will hold the same number of Calloway Units after the Reorganization as they did before the Reorganization so their ownership interest in Calloway will be unchanged.
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