Sage Properties Divestiture Update

“Sage Properties” is the company that was formed during the ABC District District CCAA process wherein the District’s businesses and assets were folded into one corporation with a mandate to clean everything up, sell off the assets, and return as much funds as possible to the CEF depositors.

Long story short, there’s reason to hope that this’ll all be wound up by the end of 2019. If the hoped-for transaction doesn’t complete in 2019, the Board will continue working to subdivide the properties, fix the utilities issue, and sell the assets. One way or another the Sage Board expects to complete their mandate sometime in 2020.

From Sage’s Sept 20, 2019 post to their website:

Sept 20, 2019: Voting Results – Sept 14, 2019 Annual Meeting

Divestiture Update:

Earlier this year, the board reviewed the 3 year mandate received from its shareholders to determine if it would be in the best interests of shareholders to move forward with the sale of its assets, without the subdivision and emancipation of utilities being 100% complete.  During this period, Sage also experienced an increase in interest from qualified buyers.  Seeing this increase in the market, the board made the decision to move forward with hiring a broker and to start the process of disposing of Sage’s assets.  In June 2019, the Board hired KPMG Corporate Finance, an experienced middle market broker, to commence a confidential sales process. In August 2019, KPMG commenced a broad divestment process and I am very excited to announce that there has been strong interest from potential buyers.  While at this stage it is too early to determine whether the process will result in an acceptable offer or to determine an exact timing for the closing of a potential transaction, it is our hope than attractive offer will be obtained this fall and that a transaction will be presented to shareholders for approval later this year.

In the event that attractive offers are not received, Sage will continue its work on the mandate of subdivision and emancipation of the utilities, looking to complete its mandate in 2020.

Sept 9, 2019 – Management Staffing Changes

Sage Properties Corp. (“Sage”) wishes to advise that Scott McCourquodale has stepped down as CEO and Sage board member effective August 30, 2019.   Mr. McCourquodale served in these roles at Sage for approximately three years. The board of directors of Sage thanks Mr. McCourquodale for his contributions to the company and wishes him well on his future endeavours. Sage does not expect to obtain a replacement for Mr. McCourquodale. The board of directors believes it can carry out its current value maximizing mandate within the current management team.

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