Nova Net Lease REIT: Unitholders Overwhelmingly Approve Transaction Resolution

Nova Net Lease REIT (CSE: NNL.U) (OTCQB: NNLRF), a real estate investment trust with investments in cannabis-related properties in the U.S., announced the results of voting at its special meeting of unitholders held on December 30, 2024. Unitholders overwhelmingly approved a special resolution in connection with the REIT's previously announced transaction, whereby the REIT will indirectly sell all of the Class A Units of Nova Net Lease Operating LLC to BlueBird Real Estate Holdings, LLC for total gross proceeds of US$3.71 million. The subsequent distribution of the REIT's net assets to unitholders and the termination of the REIT were also approved.



Over 56% of the issued and outstanding units of the REIT were voted at the Special Meeting, indicating a high level of engagement and participation among unitholders. The resolution approving the Transaction Resolution was passed with 100% of the votes cast in favour, as well as 100% of votes cast after excluding votes attached to units beneficially owned or over which control or direction is exercised by Steve Dawson, Katie Barthmaier, and their respective affiliates. This unanimous approval demonstrates the unitholders' strong support for the proposed transaction.



The REIT's effective communication strategies and outreach efforts contributed to the high voter turnout. The REIT rescheduled the meeting to accommodate the Canadian Union of Postal Workers strike, ensuring all unitholders had the opportunity to vote. They also encouraged unitholders to access meeting materials electronically and vote by proxy well in advance of the proxy deadline. The REIT's proactive approach to maximizing voter turnout and ensuring accessibility and convenience in voting likely contributed to the high turnout and the overwhelming approval of the Transaction Resolution.

The proposed transaction and its potential benefits played a significant role in encouraging unitholders to participate in the vote. The expected gross proceeds of US$3.71 million from the Class A Unit Sale, the subsequent distribution of the REIT's net assets to unitholders, and the termination of the REIT in accordance with its declaration of trust likely motivated unitholders to support the resolution. The REIT's forward-looking statements highlighting the anticipated benefits of the Transaction to the Unitholders, including the liquidating distribution, also helped unitholders make informed decisions about the vote.

The REIT addressed any concerns or questions raised by unitholders regarding the Transaction Resolution during the communication process by providing detailed information and addressing specific points in the management information circular. The REIT explained the benefits of the Transaction, clarified the timeline and process for the distribution of net assets, and rescheduled the meeting to ensure all unitholders had the opportunity to vote. These efforts demonstrate the REIT's commitment to transparency and addressing unitholder concerns throughout the communication process.

In conclusion, Nova Net Lease REIT's unitholders overwhelmingly approved the Transaction Resolution at the special meeting, with over 56% of the issued and outstanding units of the REIT being voted. The REIT's effective communication strategies, proactive approach to maximizing voter turnout, and the potential benefits of the proposed transaction likely contributed to the high turnout and the overwhelming approval of the resolution. The REIT's commitment to transparency and addressing unitholder concerns throughout the communication process further demonstrates their dedication to their unitholders' best interests.