Hi-Rise Capital Ltd.

IMPORTANT UPDATE REGARDING INITIAL DISTRIBUTION

This update is in respect of the Distribution Plan and Initial Distribution made to Investors pursuant to the Initial Distribution Order (further described below on this website under the heading “Distribution Plan and Initial Distribution”).

At this time, Representative Counsel has only issued the Initial Distribution (in other words, it has only made one distribution to Investors). Accordingly, if you have already received and cashed/deposited your Initial Distribution cheque, this section of this website does not apply to you.

The Initial Distribution was made to Investors in April 2021 by Alvarez & Marsal Canada Inc., in its capacity as court-appointed Distribution Agent (the “Distribution Agent”). The records of the Distribution Agent indicate that some Investors have not cashed/deposited their Initial Distribution cheques.

We ask these Investors to attend to the following immediately:

1. Cash/deposit your Initial Distribution cheque immediately (as it is soon set to expire).
2. If you have either lost or not received your Initial Distribution cheque, please contact Representative Counsel immediately at HiRiseCapital@millerthomson.com so that we may cancel the existing Initial Distribution cheque and re-issue you a new one.
3. If you attempt to cash/deposit the Initial Distribution cheque and same is expired, please contact Representative Counsel immediately at HiRiseCapital@millerthomson.com so that we may re-issue you a new one.

Appointment of Representative Counsel

Pursuant to the Order of the Honourable Mr. Justice Hainey of the Ontario Superior Court of Justice (Commercial List) (the “Court”) dated March 21, 2019 (the “Order”) Miller Thomson LLP (“Representative Counsel”) was appointed to represent all individuals and/or entities (“Investors”) that hold an interest in a syndicated mortgage (“SMI”), administered by Hi-Rise Capital Ltd. (“Hi-Rise”), in respect of the property municipally known as 263 Adelaide Street West, Toronto, Ontario (the “Property”) and the proposed development known as the “Adelaide Street Lofts” (the “Project”). A copy of the Order can be found in the ‘Documents’ section of this webpage.

Pursuant to the Order, Representative Counsel represents the interests of all Investors, except Investors who do not wish to be represented by Representative Counsel and have completed and delivered an Opt-Out Notice.

Communications with Representative Counsel

Representative Counsel has established this webpage to facilitate communications with Investors. This webpage will include information and documents relevant to Investors. Please regularly consult the ‘Communications’ section of this webpage for updates from Representative Counsel on this proceeding. Representative Counsel will also email updates and communications to all Investors on the email distribution list. If you are not receiving these emails, please email Representative Counsel at the email address below and we will add you to the email distribution list.

Questions regarding this proceeding should be directed to Representative Counsel at HiRiseCapital@millerthomson.com. Representative Counsel reviews all emails received through this email address on a daily basis, and will respond to new inquiries through further communications to Investors (which will be emailed to Investors and posted on the Website). In order to manage the volume of inquiries and to effectively respond to all Investors, we ask that all Investors submit their inquiries to this email address only.

Official Committee

Pursuant to the Order, Representative Counsel was directed to appoint an Official Committee of Investors (the “Official Committee”) in accordance with the Official Committee Establishment Process.  Representative Counsel fully carried out the Official Committee Establishment Process and selected 5 Investors to act as members of the Official Committee and 2 Investors to act as alternate members to the Official Committee.

Pursuant to the Order of the Court dated April 15, 2019 the (“Approval Order”), the Official Committee was approved and constituted. A copy of Representative Counsel’s motion materials and the Approval Order can be found in the ‘Documents’ section of this webpage.

Subsequent to the Approval Order, one of the Official Committee members resigned. Accordingly, there are currently 4 Investors that act as members of the Official Committee. Representative Counsel regularly consults with and takes instructions from the Official Committee in respect of matters related to this proceeding. Members of the Official Committee are required to follow the Official Committee Protocol.

Transaction, Settlement, and Court Approval

In November 2019, Lanterra Developments Ltd. offered to purchase 100% of the Property for the purchase price of $69,000,000 (the “Lanterra Transaction”). The parties entered into Minutes of Settlement to memorialize the terms of the Lanterra Transaction (the “Settlement”). Full details of the Settlement are set out in the Fourth Report of Representative Counsel dated January 9, 2020 and the Motion Record of Representative Counsel dated April 6, 2020, copies of which are posted under the ‘Documents’ section of this website.

The Settlement was amended by Amended Minutes of Settlement. Under the terms of the Settlement, as amended, the Lanterra Transaction is scheduled to close on November 16, 2020. After this closing date, Representative Counsel will attend to the distribution to Investors in accordance with the process set out in the Minutes of Settlement.

On April 27, 2020, the Court approved the Settlement, as amended, and the Lanterra Transaction, among other things. A copy of the Order of Justice Hainey dated April 27, 2020 is posted under the ‘Documents’ section of this website.

Distribution Plan and Initial Distribution to Investors

Pursuant to the Order of Justice Hainey dated November 23, 2020, a copy of which is posted under the ‘Documents’ section of this website, the Court approved the Distribution Plan and related Distribution Plan Procedures (as defined therein), under which Investors will receive their distribution from the Settlement.

Pursuant to the Order of Justice Hainey dated March 17, 2021 (the “Initial Distribution Order”), a copy of which is posted under the ‘Documents’ section of this website, the Court appointed Alvarez & Marsal Canada Inc. as Distribution Agent in these proceedings, and the Court authorized and directed Representative Counsel to distribute the Initial Distribution Amount (as defined therein) to Investors.

In accordance with the Initial Distribution Order, in or around April 2021, the Initial Distribution was made by the Distribution Agent to Investors, which was delivered by cheque and mailed to the addresses for Investors as recorded in our files.