The Delma Group Inc. Announces the Acquisition of a Multi-Million Valued Commercial Real-Estate Property Located in Salaberry...

The Delma Group Inc. (CSE: DLMA) (the “

Company”

 or “

Delma

”) announces that it has closed the acquisition of the commercial real estate property located at 395-425, rue des Érables, Salaberry-de-Valleyfield, Quebec (the “

Property

”). The acquisition was completed by virtue of purchasing 100% of the issued and outstanding shares of 9371-9904 Québec Inc. (“

9371

”), a private portfolio company that owns all of the equity interest in the Property, held jointly by two arm’s length parties to the Company (collectively, the “

Vendors

”) (the “

Transaction

”). The Transaction is closed on Thursday, July 25, 2019.

The acquisition of 9371 was paid at a net price of $2,244,967 paid by the issuance of 955,305 class A common shares in the capital of Delma at a price of $2.35 per common share (the “Purchase Price”), which Purchase Price is inclusive of the settlement of an outstanding debt held by one of the Vendors against the Company, totalling $400,000 and being settled by the issuance of common shares of the Corporation at a price of $2.35 per common share. No finder’s fee or commissions of any kind has been paid in connection with the Transaction.

The parties have agreed that the Transaction be structured as a purchase and rollover transaction with Delma’s wholly-owned subsidiary, Delma Real Estate Corporation (“DREC”) for tax efficiency purposes. The Transaction does not constitute a “related party transaction” as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transaction, and, as such, will not require shareholder approval.

This Transaction increases the Company’s total assets to about $110M.

About The Delma Group Inc.:Delma operates in Canada in the development, acquisition and management of multi-purpose real estate, including retail, multi-suite residential, industrial, and office buildings as well as land for future development. The Company’s investment platform is based on an integrated, agile and efficient develop-to-own strategy that enables the group to capture development profits and the value-add while securing stable long-term returns.

For more information, please visit www.delma.ca and www.sedar.ca. DLMA.CN

Source: The Delma Group Inc.

For more Information, please contact: Joseph CianciCFOT: 1.844.663.3565 (Ext. 102)E: [e-mail]