Mainstreet completes reverse takeover of Kingsway arms retirement residences Inc.
April 6, 2016
CARMEL, Ind. – Mainstreet Investment Company LLC, an affiliate of Mainstreet®, a national company known for real estate development, value investments and health care, announced today that it has completed a reverse takeover (RTO) transaction with Kingsway Arms Retirement Residences Inc. (KWA), a publicly traded Canadian corporation. The new company was renamed Mainstreet Health Investments Inc. (TSXV: HLP) (the “Company”). The RTO transaction was previously announced on November 6, 2015.
The RTO transaction, which was completed on April 4 and approved by KWA shareholders, results in the Company owning a portfolio of 10 senior care properties in and around Chicago. The RTO transaction also marks Mainstreet’s return to the Canadian public markets and is part of a long-term strategic plan to assemble a high quality portfolio of senior care properties.
The board of directors of the Company consists of Paul Ezekiel Turner, Dan Amadori, Brad Benbow, Shaun Hawkins, Rick Turner, Rob Dickson and Katherine C. Vyse. The senior officers of the Company are as follows: Adlai Chester (Chief Executive Officer), Scott White (President) and Scott Higgs (Chief Financial Officer).
“Mainstreet has an opportunity to recreate the success it has found in the past by creating value for shareholders,” said Zeke Turner, founder and CEO of Mainstreet. “Our pace and scale continue to require significant capital, and with this completed transaction, we’ll be able to continue transforming the seniors care and health care industries.”
The Company’s portfolio of 10 senior care housing properties is comprised of 2,305 beds in and around the Chicago area. As part of the transaction, the Company intends to acquire an eleventh property in the coming months.
The Company’s strategy will be growth-oriented, focused on the acquisition of income-producing seniors housing and care properties throughout the United States and Canada. Specifically, the Company will look to acquire properties which offer predominately skilled nursing, assisted living, memory care and short stay transitional care.
“We are excited to return to the Canadian public markets,” said White, president of the Company. “What we’re doing now is building on our previous success in the Canadian capital markets, while effecting industry change and leveraging existing relationships to help us grow this portfolio.”