Subversive Real Estate Acquisition REIT LP Announces Completion of U.S.$200,000,000 Initial Public Offering

Published: January 10, 2020

Subversive Real Estate Acquisition REIT LP Announces Completion of U.S.$200,000,000 Initial Public Offering

Subversive Real Estate Acquisition REIT LP (the “REIT LP“) announced the closing (the “Closing“) of its initial public offering (the “Offering“) of 20,000,000 Class A restricted voting units of the REIT LP (the “Class A Restricted Voting Units“) at an offering price of U.S.$10.00 per Class A Restricted Voting Unit, for gross proceeds of U.S.$200,000,000. The REIT LP has granted the Underwriters (as defined below) an over-allotment option (the “Over-Allotment Option“) to purchase up to an additional 3,000,000 Class A Restricted Voting Units on the same terms and conditions, exercisable in whole or in part, by the Underwriters up to 30 days following Closing.

The gross proceeds from the Offering were (and the gross proceeds from any exercise of the Over-Allotment Option will be) deposited into an escrow account pending completion of a Qualifying Transaction (as defined in the Final Prospectus) by the REIT LP and will only be released upon certain prescribed conditions, as further described in the REIT LP’s final prospectus dated December 23, 2019 (the “Final Prospectus“). The Offering was distributed by Canaccord Genuity Corp. and Echelon Wealth Partners Inc. (the “Underwriters“).

The REIT LP is newly-established Ontario limited partnership for the purpose of effecting an acquisition of one or more real estate businesses and/or assets within a specified period of time. Subversive Real Estate Acquisition REIT (GP) Inc., a newly formed company incorporated under the laws of the Province of British Columbia, is the general partner of the REIT LP (the “General Partner“). The REIT LP is a special purpose acquisition corporation for purposes of the rules of the Exchange. The REIT LP intends to focus its search for target real estate businesses and/or assets that are involved in the cannabis industry and/or related sectors; however, it is not limited to the acquisition of cannabis-related real estate businesses and/or assets or to a particular geographic region and may acquire other classes of real estate businesses and/or assets and/or non-real estate businesses or assets for purposes of completing its Qualifying Transaction. The REIT LP is targeting a Qualifying Transaction that will aggregate a portfolio of properties with an estimated aggregate enterprise value of between U.S.$200 million and U.S.$650 million.

The General Partner’s management team and board of directors is comprised of: Michael Auerbach (Executive Chairman and director), Richard Acosta (Chief Executive Officer and director) Michael Miller (Chief Financial Officer), Eric Clarke (Chief Operating Officer), Leland Hensch (director), Omar Mangalji (director), Scott Baker (director), Octavio Boccalandro (director), Anne Sullivan (director) and Craig Hatkoff (director).

The sponsors of the REIT LP are Subversive Real Estate Acquisition Sponsor Corp. (“Subversive Sponsor“), Inception Altanova Sponsor, LLC (“Inception Sponsor“) and CG Investments Inc. IV (“CG IV“) (collectively, the “Sponsors“). Subversive Sponsor is controlled by certain officers and directors of the General Partner. Inception Sponsor is owned by certain officers and directors of Inception Altanova, LLC, an affiliate of The Inception Companies and is controlled by certain officers and directors of the General Partner.

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