Trillium Acquisition Corp. Agrees to Acquire SNFLWR Investment Corporation
News related to:Trillium Acquisition Corp · 2 min read
Trillium Acquisition Corp., a Toronto-based company listed on the TSX Venture Exchange, has entered into a definitive agreement to acquire SNFLWR Investment Corporation, a private real estate development firm based in British Columbia. The transaction, expected to be completed by the end of the year, will see Trillium issue 81 million new shares to SNFLWR shareholders, valued at $0.05 per share.
Upon completion, Trillium will change its name to "Watershed Commercial Real Estate Corp." and will focus on value-add commercial and industrial assets across Canada. The company plans to acquire existing properties, increase net asset value through repositioning and leasing, and pursue pre-leased build-to-suit development projects that meet its investment criteria.
The transaction is subject to several conditions, including a satisfactory due diligence review, receipt of necessary corporate approvals, and third-party approvals. The deal is expected to enhance Trillium's portfolio with the addition of the Real Estate Asset, a 40,200 square foot light industrial campus in Penticton, BC, consisting of three buildings. One building is currently complete and generating rental income, while the other two are in various stages of development.
SNFLWR Investment Corporation, founded by Jeremy Dawn, has been developing the property since its acquisition in March 2024. The project is estimated to generate positive net operating income annually on a triple-net rent basis, with rental rates set to increase over the lease terms. Dawn, who will become the CEO of the Resulting Issuer, brings extensive experience in commercial and industrial real estate development, having previously held senior roles at Mission Group and Deloitte.
Robert Morin, the CFO of the Resulting Issuer, has over 20 years of experience in finance and capital markets, including roles at Trinidad Drilling Ltd., Newalta Corporation, and Precision Drilling Corporation. His expertise will be crucial in managing the financial aspects of the new venture.
Kelly Hanczyk, currently the CEO of Nexus Industrial REIT, will join the board of directors. Hanczyk's background in real estate management and asset development, gained from his roles at TransGlobe Apartment Real Estate Investment Trust and Summit Real Estate Investment Trust, will provide valuable insights into the company's strategic direction.
The transaction is also expected to include a concurrent private placement to raise additional capital for the Resulting Issuer's platform operations and the continued development of the Real Estate Asset. The terms of the private placement will be disclosed once finalized.
Trillium's acquisition of SNFLWR marks a significant step in its strategy to expand its commercial real estate portfolio in Canada. The deal is anticipated to strengthen Trillium's position in the market and position it for future growth.