Firm Capital uses Plan of Arrangment on micro-cap TSXV company to launch a REIT

In the resource sector, it is common for promoters to arrange for the take-over a micro-cap company that already has a listing, thereby avoiding an IPO.  The Firm Capital Property Trust (the "Trust") is an interesting variation on this type of transaction.

An existing micro-cap TSXV-listed company will raise cash by selling its only asset and closing a private placement, and will also issue shares to the new Trust in exchange both for units of the Trust and for cash, and then will redeem out all its common shareholders (other than the Trust) in consideration for cash or the transfer to them of the Trust units.  The Trust is intended to qualify as a TSXV-traded REIT.

Neal Armstrong.  Summary of ISG Circular under S. 84(3) Redemption Spin-offs.