Sagicor X Fund Raising J$4.2b (US$35m) To Acquire Convention Hotel In Florida

Sagicor Real Estate X Fund Limited is pleased to announce that it proposes to undertake a rights issue of up to 598,134,700 new ordinary shares on the basis of two (2) new ordinary shares for every five (5) ordinary stock units held as at August 17 2015 (“the Record Date”).

The rights issue price will be J$6.95 per share which represents a 13.45% discount on J$8.03 (being the closing price of the stock on the Jamaican Stock Exchange on the trading day immediately preceding this announcement). The gross funds expected to be raised from this Rights Issue is J$4,157,036,165.

The funds raised from the Rights Issue (which will convert to approximately US$35,229,120 (using an exchange rate of US$1.00 = J$118.00) are intended to be used to assist X Fund to acquire a convention hotel in Orlando, Florida, which is affiliated with a major hotel chain. If the purchase of the hotel is completed before completion of the Rights Issue then the funds raised in the Rights Issue will go to liquidate, in part, any bridge financing obtained by X Fund.

The resort has 742 rooms (inclusive of 17 suites) with over 62,800 square feet of meeting and convention space. It is located in Orlando at the entrance to the Universal Theme Park. The balance of the purchase price is expected to be funded by way of a loan.