copperstone resort phase ii investment opportunity

Transcription

CopperStone reSort phaSe II
InveStment opportunIty
CopperStone Resort Phase II
·1·
Investment Opportunity
Contents
·2·
Introductions
2
Alberta 4
Alberta’s oil: Canada’s economic driver
4
Alberta real estate
5
Canmore
6
Forecasted demand for recreational property
7
The CopperStone Resort
8
The CopperStone team
9
The CopperStone business plan
10
The investment in CopperStone Phase II
10
Tax-deferred and tax-free
11
Security
11
Completing your investment
12
Contact
12
Disclaimer
12
·3·
Dear fellow investor,
Dear investor,
As a real estate investor and developer myself, I come across many investment opportunities in Western
Canada each year. Many of these projects may look good at first glance, until a due diligence process reveals a
reason why one should perhaps not get involved.
With Phase I completed, Timber Creek Developments is very excited to start the second and final phase of
CopperStone Resort. Timber Creek Developments is comprised of three partners: Doug Stephen, Mark Minckler,
and Katie Holder. The three of us have worked together since the day we bought the land for CopperStone in
Dead Man’s Flats, Alberta, after many visits to the site and careful consideration and analysis. Since that day, we
have worked relentlessly towards the first half of our goal of building a world-class resort in this pristine location.
The completion of Phase II will make this dream a reality.
Once in a while I find a project with exceptional qualities, whether because of the location, the design, the
facilities, the general idea or concept, the business plan, local market conditions such as supply and demand, or
other reasons that make it stand out from the others. CopperStone Resort is one of these exceptional projects.
Besides deciding to invest, I may then also offer to assist the developer through my company, Canada Pacific
Investment Group Ltd., to facilitate the structuring and marketing of the project; in other words, to help the developer share the information with other investors like you. Over the last five years, CPI Group has been involved
in this way with the marketing and funding for several projects, working with investors in Canada and overseas
in the Netherlands.
During the due diligence process, the CPI Group works with consultants outside of the company (all experts
in their field) with whom we may further evaluate a project. Our roster of consultants and industry experts can
provide external insight for each project that we consider as an investment opportunity.
Here are some of the aspects that we consider to be noteworthy about CopperStone Resort.
For starters, it is the resort’s outstanding location. Living in Canmore with my family and being involved in
the community for 17 years, I have a thorough understanding of the real estate development cycle my hometown
has gone through, but when I first moved to the Bow Valley in 1993, I lived right beside where CopperStone now
stands. Our first memories of living in the Rockies are of taking long walks beside the Bow River and watching
wildlife in silence, only minutes from the shops and restaurants of Canmore, yet a world apart.
Then there is the track record and the team behind the resort. During the recession of 2009, when many local developers threw in the towel, the team behind CopperStone Resort stayed on course and finished what they
planned to do. The result stands as a fact: Phase I has been completed; almost all units are sold, and the resort is
being operated as a successful hotel. I encourage you to visit the resort and see for yourself.
We believe that the timing for Phase II couldn’t be better – the recession is behind us and the Canadian
economy is back on track, with Alberta leading the way. Phase I has been operating as a hotel for over a year now
and our owners, whom we have all gotten to know on a personal level, are enjoying the revenues of a successful
and highly popular hotel through their participation in the rental pool. Our setting on the edge of a wildlife corridor and only a short walk from the banks of the Bow River is very appealing to both owners and guests alike.
With both an experienced and successful hotel management company and a professional condominium
corporation on board, Timber Creek Developments has again assembled the perfect team to ensure a successful
second phase of the resort.
We hope that you will decide to participate in the investment opportunity that the financing of Phase II of the
resort offers.
We invite you to attend one of the upcoming Meet the Developer events at the resort so you can see for
yourself what enticed us to decide to build the resort here, and the quality of workmanship we have put into
Phase I.
We will certainly look forward to seeing you there.
Sincerely,
The Timber Creek Developments Team
I am happy to present you with this investment opportunity.
Sincerely,
Ralph J. van der Walle
President, CPI Group
* Please read the disclaimer at the back of this brochure regarding the limitations of our involvement.
·4·
Doug Stephen
Katie Holder
·5·
Mark Minckler
Alberta’s oil:
Canada’s
economic driver
In spite of the fact that many of its residents may not be fully aware
of it, the position of Alberta in today’s global economy could not be
better.
Global demand for oil is on the increase, thanks to vast and unprecedented numbers of people in countries such as Brazil, Russia, India,
and China moving into the middle classes of society. For illustration
purposes, let’s focus on China alone for a minute. By 2010, the percapita car ownership ratio in China will have increased to 40 cars for
every 1,000 citizens. This is a 67 per cent increase since 2006, when
the ratio was 24 per 1,000, according to a report by Chinanews. By
contrast, the US has 765 vehicles per 1,000 (2002 data), while Europe has an average of about 300 vehicles per 1,000. In the past year
alone, 8.26 million motor vehicles were added to China’s roads, a
5.17 per cent increase. Monthly sales of automobiles in China are
now upwards of 1.3 million.
Alberta has an estimated 150,000 pump jacks
Alberta
Known the world over for its magnificent scenery and the majestic
Rocky Mountains, Alberta hosts about four million tourists every
year from every corner of the globe. It is perhaps best known for its
five national parks, which include Banff and Jasper National Parks,
and over 300 provincial parks. The Rocky Mountains offer a wide
range of recreation, such as skiing, mountaineering, hiking, mountain biking, rafting, fly-fishing, golf and wildlife watching. Alberta’s
cities and their many annual festivals are another draw for visitors.
Tourism is the fourth largest industry in Alberta, with a turnover of
more than CAD $5 billion a year. Some 83,000 people are employed
by the tourism industry.
HISTORY
2200
2000
(Sources: US Bureau of Census.)
At the same time as the global demand for oil is poised to increase
sharply, the production of oil through existing conventional sources
is decreasing. This fact is likely to cause a steep rise in the price we
pay for oil, but at the same time can be seen as a great opportunity
for the Alberta oil sands to move further into the spotlight on the
world stage as a responsible, politically stable, global source of oil.
PROJECTIONS
Rest of World
1800
Total vehicles (millions)
By comparison, between 2005 and 2006, the number of motor vehicles on US roads increased by 1.38 per cent. In order to find the point
when per-capita ownership of a car was as low in the United States
as it now is in China, we have to go back to the early 1920s.
Rest of Sample
1600
Brazil
1400
India
1200
1000
China
800
600
Rest of OECD
400
200
0
1960
USA
1970
1980
1990
2000
2010
2020
2030
The economic impact of current and future growth in the Alberta oil
sands on the economy of Canada can hardly be overstated. Canada
has the second largest petroleum reserves in the world, second only
to Saudi Arabia. Much of this is located within Alberta’s oil sands,
which are the largest known oil sands in the world, covering a
140,200-square-kilometre area. About 27.6 billion cubic metres (175
billion barrels) of bitumen are locked in the northern sands. Currently, industry extracts around 1.1 million barrels of oil per day, which
represents about one-third of the province’s total crude oil production, a rate expected to rise to 2.2 million barrels per day by 2015.
Alberta exports about 1.4 million barrels per day of crude oil to the
U.S., supplying 13 per cent of its annual crude oil. This makes Alberta
the number one supplier of oil to the United States.
The study suggests that
$218 billion will be invested
in new oil sands capacity over
the next 25 years as output of
bitumen increases to
4.3 million barrels per day.
The Canadian Association of Petroleum Producers (CAPP) releases
a regular report titled Crude Oil: Forecast, Markets and Pipelines. In
one recent report it states: “By 2015, oil sands output is expected to
increase to 2.2 million barrels per day under a more bullish scenario
and 1.9 million barrels per day under a less optimistic one.”
Aerial view of CopperStone Resort and the Bow River
Alberta
real estate
Total planned investments in the development of the oil sands are
estimated to range from CAD $100 to $160 billion over the next decade. Statistically, each dollar generated in the oil sands generates
nine dollars in related service industries; each direct oil sands job
generates three jobs in other industries.
The province of Alberta has a strong economic outlook for 2011
and beyond. Calgary was just recently deemed the number one city
in Canada for real estate investment by the Real Estate Investment
Network. “Calgary is in a unique economic and geographic position
to take advantage of the direct and indirect jobs this increase in demand will create,” says Don Campbell, President of Real Estate Investment Network. He adds that with strong in-migration and renewed
affordability, the city provides a good buying window for long-term
investors. Canmore, with its prominent location just under one hour
from the city’s western limits, has evolved from a coal-mining town
into a true world-class resort with many top restaurants and recreational opportunities.
According to a recent study by the Canadian Energy Research Institute in Calgary, the Alberta-centred petroleum industry will add
$3.6 trillion to Canada’s gross domestic product and create nearly
one million additional jobs over the next 25 years through the investment of $1 trillion. The study suggests that $218 billion will be
invested in new oil sands capacity over the next 25 years as output
of bitumen increases to 4.3 million barrels per day.
The oil sands production will result in $1.7 trillion in incremental GDP
growth for Canada, $78.1 billion alone for Ontario and Quebec, the
study concludes, adding that this translates into 700,000 jobs being
created across the country and additional tax revenues for Canada
of over $306 billion.
The economic - and population - growth of the province of the last
decade has had a significant impact on the Alberta real estate market. Periods of unprecedented growth in the job markets due to
massive investments in the oil and gas industry as well as other industries increased the population of the greater Calgary area alone
by up to 35,000 new residents in 2006. (www.calgary.ca/DocGallery/
BU/cityclerks/city.pdf ) Growth levelled off to more sustainable levels
during the recession of 2009. As a result, the start of new housing
projects decreased significantly.
When conventional gas and oil developments, plus LNG (liquid natural gas) development, pipelines and offshore facilities are added in,
the industry will boost Canada’s GDP by $3.6 trillion ($144 billion in
Ontario alone) and will create 980,000 new jobs, contributing additional tax revenue of $429 billion in Canada.
The economic benefits will be greatest in Alberta, which stands to
gain $2.6 trillion in GDP growth and 560,000 jobs.
Total global vehicles, historic and forecasted,
1960-2030 (various sources)
·6·
·7·
Canmore
The Royal LePage house price survey of the first quarter of 2010
states:
“Housing markets in Alberta continued to recover in the first
quarter of this year. Although still averaging lower than prerecession prices, all housing types in Calgary saw year-overyear price increases ranging from 7 per cent to 10.6 per cent.
In Edmonton, home prices remained flat or increased yearover-year, with standard two-storey homes experiencing the
largest increases at 5.2 per cent.”
CopperStone Resort is located a mere two-minute drive east of the
Three Sisters Interchange, the first exit off the TransCanada Highway
into Canmore.
(Source: www.royallepage.ca/en/media/100408-house-price-survey-q1-2010)
The Royal LePage house price survey of the second quarter of 2010
states:
“We have seen an unusual pattern of activity in the housing
market over the past 12 months, with the market experiencing a surge of activity and price increases that peaked in the
fall of 2009 rather than spring. Early 2010 has followed a
more typical seasonal pattern with prices and activity peaking in the second quarter,” said Phil Soper, president and
chief executive, Royal LePage Real Estate Services. “An expected increase in the supply of homes on the market will
now bring stabilization in prices and in some cities we will
see both prices and unit sales decline towards the end of the
year. This should not be interpreted as a severe correction but
rather a natural reaction to the market having peaked quite
early this year.”
The town of Canmore, with its approximately 18,000 residents —
12,000 full time and 6,000 part-time (2010 municipal census) —
lies 90 kilometres to the west of Calgary, and is widely known for
hosting several events at the 1988 Winter Olympics. It has seen a
strong growth in population ever since.
Market research carried out by leading real estate agency Royal LePage showed that in 2007 an average of nine per cent of Canadian
residents had a “recreational property:” a second home or vacation
home. The research also showed that another five per cent of residents wanted to buy a vacation home.
This former coal-mining town in the Bow River valley is surrounded
by nearly three million acres of protected nature reserves, including Banff National Park and Kananaskis Provincial Park. Living in or
spending time in Canmore offers easy access to these parks and
their many recreational activities.
In a 2010 nationwide Angus Reid survey of Canadian attitudes
towards recreational property ownership commissioned by Royal
LePage Real Estate Services, more potential buyers in Alberta are
considering purchasing a condo as a recreational property in the
next 24 months (29 per cent) than in any other region in Canada.
Canmore has a limited land supply for real estate projects, as the
Bow Valley has a maximum width of about five kilometres and
there is little flat land available. Moreover, the surrounding areas are
protected nature parks where no building projects are allowed. In
the last ten years, there has been much demand for housing from
both local and foreign owners and investors. The annual increase in
the value of certain segments of the real estate sector in Canmore
ranged from 15 per cent to 27 per cent in the last decade.
Real estate supply and demand in Canmore is greatly affected by
economic developments in the province of Alberta, which in turn
are very much influenced by the oil and gas industry.
(www.royallepage.ca/en/media/100707-house-price-survey-q2)
The real estate market in Calgary is beginning to lean in favour of the
buyer. Price levels for detached bungalows and standard two-storey
homes are moderately higher in the second quarter of 2010 compared
to last year, but average prices for standard condominiums have dropped
slightly over the same period. Inventory levels have been high and price
increases are expected to remain nominal for the remainder of 2010.
The recession of 2009 had a noticeable impact on the development
of real estate in Canmore. Many projects were delayed, changed
or cancelled. Three Sisters Mountain Village, a 1,800-acre mountain sanctuary and among the largest real estate developments of
its kind in Western Canada, went into receivership. Although some
building projects that had been underway are being completed, until a new owner is found for the Three Sisters development, there will
be little (if any) new serviced land made available to builders in the
foreseeable future. Three Sisters Mountain Village contains almost
all the remaining developable land in the Bow Valley.
Prices for detached bungalows and standard two-storey homes in
Edmonton increased modestly over second quarter levels of 2009,
while standard condominium prices have dropped. As markets continue to stabilize and inventory levels return to normal, prices are
expected to decrease slightly over the rest of this year.
During the recession of 2009, when many
local developers threw in the towel, the team
behind CopperStone Resort stayed on course
and finished what they planned to do.
Forecasted demand
for recreational
property
·8·
Three Sisters Mountain and the Bow River near Canmore
More than any other region, potential buyers in Alberta consider a
recreational property’s long-term investment potential as a primary
reason to buy (49 per cent). This is compared to the national average
of 43 per cent. Interestingly, Albertans are just as likely (49 per cent)
to consider lifestyle as a reason to buy.
More than any other region,
potential buyers in Alberta
consider a recreational
property’s long-term
investment potential as a
primary reason to buy.
The three most important features to potential buyers in the region
are four-season use (51 per cent), proximity to amenities (48 per
cent), and waterfront/beach access (42 per cent). This is followed
closely by peace and quiet at 41 per cent.
(http://www.royallepage.ca/en/media/index.aspx “Canadians pursuing recreational property for lifestyle.”)
Regional Trends in Preferred Property Types
Q: If you were to purchase a recreational property, which of the following are you most likely to purchase?
National
BC
AB
MB/SK
ON
PQ
ATL
Cottage on a lake
34 %
25 %
14 %
18 %
45 %
39 %
48 %
Condominium at a resort
24 %
27 %
29 %
24 %
24 %
16 %
8%
Property in the woods
5%
4%
6%
3%
5%
8%
6%
Timeshare
10 %
11 %
14 %
15 %
9%
4%
8%
Mobile home / RV
13 %
15 %
18 %
26 %
8%
15 %
21 %
Farm
1%
0%
1%
2%
0%
1%
0%
Vacant land
2%
2%
4%
3%
2%
2%
4%
Fractional ownership
3%
3%
5%
0%
2%
5%
2%
Chalet near ski hill
3%
7%
0%
2%
1%
4%
0%
Other
5%
7%
10 %
8%
3%
5%
2%
·9·
The CopperStone
team
CopperStone Resort is being developed by Timber Creek Developments. The three principals of Timber Creek Developments are Doug
Stephen, Mark Minckler and Katie Holder. Each has over 25 years of
related experience and education in their respective fields.
Doug Stephen
Project Development, Management and Construction
Doug is the development manager, coordinating all key project components including design consultants, the general contractor, sales
and marketing, and finance management. Over the last 25 years, Doug
has been involved in various aspects of commercial and multi-unit
projects; in the last ten years he has expanded into project development of vacation properties in the Canmore area. Doug has many areas of expertise, including value engineering, quality control, and time
management. He has also won multiple sales and marketing awards.
Doug is a graduate of the Building Construction Engineering Technology program at the Northern Alberta Institute of Technology.
specific needs. As well as marketing, her other areas of expertise are
in research, analysis, and customer relations.
Katie Holder
Secretary, Sales and Marketing
Katie graduated at the top of her class from British Columbia Institute of Technology (BCIT)’s Marketing Management Entrepreneurship Program while also winning numerous scholarships. In this program, she learned many aspects of running a business, all of which
were implemented in CopperStone Phase I. Prior to BCIT and CopperStone, Katie was instrumental in taking a similar project in Canmore through the design, permit approvals, financing, and marketing stages. Katie also managed a travel agency for ten years, which
allowed her to work with numerous types of people with varied and
Katie’s roles in CopperStone include sales management, marketing,
legal, FF&E (furniture, fittings and equipment), liaison with hotel and
condo management, and purchaser relations.
CopperStone Resort Phase I – inner courtyard with hot tub and barbecue area at sunset
The CopperStone
Resort
There is nothing that makes a resort more valuable than year-round
activity. When you are at CopperStone, you are just a short walk
from the peaceful shores of the Bow River, but only a five-minute
drive from the centre of Canmore. You can enjoy all that this worldrenowned mountain town has to offer and be back in the solitude of
your mountain retreat at the end of your day.
Located at 250 2nd Avenue in the hamlet of Dead Man’s Flats, CopperStone Resort is comprised of two phases. Phase I was completed
in January 2009 and consists of 98 townhouse-style units ranging
in size from 685 square feet to 1,337 square feet. Its style could be
defined as “world-class urban alpine living.” You’ll find everything
that you would expect out of a world-class resort. Well-designed
kitchens, rustic fireplaces, and large balconies enhance your perfect
getaway. The optional furniture package includes the final touches
with blackout curtains and luxury mattresses for the ultimate sleep.
Unit interior finishes include:
• Air conditioning and heating
• Fireplace with natural fir timber mantel and
cultured stone surround
• Granite countertops in kitchen with pebble stone
backsplash
• Stainless steel appliances – fridge, stove/oven,
dishwasher and microwave
• Natural wood stained cabinetry in kitchen and
bathroom
Amenities in Phase I include a lobby, a meeting room, a fitness room,
a pool table, an outdoor hot tub and outdoor fire pit, and two outdoor barbecues. Phase I is operating as a hotel and is enjoying high
rankings on TripAdvisor.
Phase I suites feature a fireplace with fir timber mantel and
cultured stone surround
Mark Minckler
Chief Financial Officer, Finance and Accounting
As an accountant, Mark worked for nine years for a large public practice firm, where his main position was client manager. In this role,
he prepared budgets and cash flow projections, and he obtained
financing for clients. After public practice, Mark entered the private
sector with a commercial construction company which had in excess of $20 million in sales annually.
Mark’s roles in CopperStone include daily accounting, cash flows,
budgeting, financing, and corporate legal issues.
At the time of this writing, 90 out of the 98 units in Phase I have
been sold.
Phase II is scheduled to begin construction in 2011/2012; building
will proceed in two stages. Phase II will consist of approximately 200
hotel-style units starting at 330 square feet and going up to approximately 850 square feet. Some of these units will be lock-off style. The
smaller design of these rooms will provide a good balance to the
larger family-style units found in Phase I. This final phase will boast
a one-acre courtyard, unparalleled in the Bow Valley, that will feature an outdoor swimming pool and hot tubs. Other amenities will
include a bistro, convention space, a fitness room, and a games area.
Once Phase II is complete, the lobby, fitness room and meeting room
in Phase I will be converted to units and storage areas.
· 10 ·
Doug, Mark, and Katie have been partners in Timber Creek Developments since 2004. While each has specific duties, their success comes
from their ability to assist one another in all areas of the project.
The team believes in a hands-on approach; they make it a priority
to get acquainted with each new owner of a unit at the resort. Prior
to purchasing the land for the resort, the team prepared a careful
analysis and spoke to many industry experts about the viability of
the project.
Phase I kitchen with granite countertops, pebble stone
backsplash, and stainless steel appliances
The fact that Phase I is almost sold out is a testament to their sound
judgment and a statement that their vision was well conceived.
· 11 ·
The investment
in CopperStone
Capital Holdings Inc.
The capitalized terms below shall have the following meaning:
“Corporation” means CopperStone Capital Holdings Inc., a corporation incorporated under the Business Corporations Act (Alberta);
“Existing Financing” means the mortgage registered against title to the
Lands in favour of 1066906 Alberta Ltd. See Item 2.4 in the Offering Memorandum ‘The Lands.’
Phase I bedrooms all have luxury mattresses
Bonds: The securities being offered pursuant to this investment offering are Series A and Series B fixed-rate unsecured bonds (collectively the
“Bonds”).
The price of each Bond is $100. The minimum number of Bonds that must
be purchased by a subscriber is one hundred (100) Bonds for a minimum
investment of $10,000. There is no maximum number of Bonds allocated
to any subscriber.
The CopperStone
business plan
Phase II of the resort will be constructed in two separate stages;
units will be pre-sold prior to construction. Final sales pricing is yet
to be determined for Phase II. A development permit and building
permit will be required from the MD of Bighorn before construction on Phase II commences. Architectural drawings are ready to be
submitted for the development permit. The timeline for application
approval is anticipated to be approximately three months after the
date of the closing of the Minimum Offering Amount pursuant to
this investment offering. Once the development permit approval
is received, the developer will prepare construction drawings and
make any recommended changes, which should take approximately
three months. At this point the developer will apply for a building
permit. A partial building permit can be issued after approximately
one month and the final building permit will take an additional two
months. While the permits are being obtained, the developer will
clear the lands in preparation for construction.
Use of Proceeds: The Corporation intends to use the funds raised through
this Offering to pay out the Existing Financing and pay for certain legal and
marketing expenses and fees associated with this Offering.
The purchase of Bonds by an investor is not a direct investment into CopperStone Resort Phase II but instead is an investment in the financing of
Phase II.
· 12 ·
Fixed Rate Interest: Each Bond will entitle the holder thereof to the following rate of simple interest from the date of issue:
• Series A Bonds: 11 per cent interest per annum. Interest payable under the Series A Bonds shall be payable quarterly on
March 31, June 30, September 30, and December 31 of each
year during the term of the Series A Bonds.
• Series B Bonds: 10 per cent interest per annum. Interest payable under the Series B Bonds shall be payable quarterly on
March 31, June 30, September 30, and December 31 of each
year during the term of the Series B Bonds..
Tax-deferred and
tax-free investing
The CopperStone Capital Holdings Inc. Offering (meaning the offer
to purchase Bonds as per the Offering Memorandum) utilizes a Registered Retirement Savings Plan (RRSP)/Tax Free Savings Account
(TFSA) tax structure that offers the opportunity for tax-deferred and
tax-free returns. This investment structure offers a tax structure that
allows for maximum return on investment. Also see Item 6 of the
CopperStone Capital Holdings Inc. Offering Memorandum.
Note: Funds from Deferred Plan accounts may be used to purchase
Bonds pursuant to this Offering. “Deferred Plan” means any one of or
collectively an RRSP, RRIF, RESP and a TFSA.
$200,000
$150,000
$55,000
While the Offering Memorandum contains a general description of
certain tax consequences, it is not tax advice. Consult your own tax
advisor to obtain advice on the income tax consequences that apply
to you.
$100,000
$27,500
$50,000
Pre-sales for the units in Phase II are projected to commence during the month of September 2011. The completion schedule for the
sales of the first 79 units for Phase II has been planned conservatively
over a period of approximately 31 months from September 2011 to
March 2014, resulting in an average forecasted sale of 2.5 units per
month. The following 119 units have been forecasted in pre-sales
also over a period of approximately 31 months from August 2012 to
February of 2015, resulting in an average forecasted sale of 3.8 units
per month.
Maturity and Redemption: The Bonds shall mature October 31, 2016 (the
“Maturity Date”). Subject to the Corporation’s right of early redemption,
the Corporation shall redeem the Bonds on the Maturity Date through the
payment of the principal amount of the Bonds and all accrued and unpaid
interest thereon to the date of payment of such sums.
$11,000
$20,000
$50,000
Investment of
$20,000
Investment of
$50,000
$100,000
0
Principal investment
Investment of
$100,000
5 year return on investment
Examples of pre-tax return on capital investment.
This graph shows returns on various investment amounts
without taking into consideration the tax implications.
It’s not just about
what you earn,
it’s about what
you keep.
The view west from the resort, looking toward Kananaskis Country
Security
The Corporation intends to enter into a loan agreement with 1371517
Alberta Ltd. (the “Loan Agreement”), some of the anticipated terms
of which are summarized in Section 2.11.1 of the Offering Memorandum. 1371517 Alberta Ltd. is a private Alberta corporation related
to the Corporation by common officers, directors and shareholders;
and is the general partner of the CopperStone (Dead Man’s Flats) Resort Limited Partnership (the “CopperStone Partnership”), the party
that developed Phase I of the Project. The Loan shall be secured by
way of a first mortgage in favour of the Corporation to be registered
against title to the Lands together with such other commercially reasonable security. The Corporation’s mortgage may be subordinated
at a later date to other development financing obtained, likely when
Phase II commences construction after a certain amount of units
have been pre-sold.
The land for Phase II (located at Lot 1, 200 - 2 Avenue, Dead Man’s
Flats, Alberta as more particularly described in Item 2.4 of the Offering Memorandum, “The Lands”), has been owned by the Corporation since August 2006. Upon successful placement of the first $
2,500,000 ($2.5 million) of this investment offering of $4,000,000 ($4
million), monies will be released from trust and the first mortgage
will be paid out in its entirety, leaving the Corporation as sole owner
of the land which will no longer be encumbered.
· 13 ·
Completing your
investment
Contact
Subscription Documents
Subscribers wishing to subscribe for Bonds will be required to enter
into a Subscription Agreement with the Corporation. Reference is
made to the Subscription Agreement attached as Schedule A to the
Offering Memorandum for the terms of representations, warranties
and covenants.
In order to subscribe for Bonds, a purchaser must complete, execute
and deliver the following documentation to:
Canada Pacific Investment Group Ltd.
206-1080 Railway Avenue
Canmore, AB T1W 1P4
The included pre-addressed return postage-paid envelope is intended to be used to deliver the documentation.
Canada Pacific Investment Group Ltd. will verify if all required documents
have been filled out correctly and submitted and will forward these to
the Corporation at 4256 – 91A Street, Edmonton, Alberta, T6E 5V2:
1. one (1) completed and signed copy of the Subscription
Agreement included with this brochure (including any
schedules attached thereto); and
2. a certified cheque, trust cheque, or bank draft in an
amount equal to the Aggregate Subscription Amount
(as set forth in the Subscription Agreement), payable
to “Olympia Trust Company in Trust”; and
3. completed and executed copies of the appropriate investor qualification form(s). The appropriate form(s) to
be completed depend on your place of residence and
on the amount of your investment:
(i) if you are resident in British Columbia, Alberta
or Saskatchewan, you must submit two (2) completed and signed copies of the Risk Acknowledgment Form attached to the Subscription Agreement as Schedule B;
(ii) if you are resident in Alberta or Saskatchewan
and your subscription for Bonds is for more than
$10,000, one (1) completed and signed copy of
the Representation Letter attached to the Subscription Agreement as Schedule C; and
(iii) as the Bonds are being sold by a person not registered with an authorized security regulator in
accordance with NI 31-103, Schedule “D” must be
completed.
To request more information, book or confirm your attendance at
the next investment seminar, or to finalize your investment, please
contact us at:
Tel: 403.456.3006
Email: info@canadapacificinvest.ca
Disclaimer
This brochure summary has been prepared for informational purposes only and does not constitute an offering of securities, and cannot
be relied upon for making your investment decision. This summary
is qualified in its entirety by the applicable Offering Memorandum.
Reference should be made to the Offering Memorandum prior to
determining whether the securities are a suitable investment for
purchase. Please read the Offering Memorandum in its entirety before investing. This investment is not guaranteed or insured, and its
value changes depending, among other things, on economic factors and market trends. This summary may vary from that presented
in the Offering Memorandum. All capitalized terms and phrases in
this document which are not otherwise defined herein shall have
the meanings set out in the Offering Memorandum. This summary contains forward-looking statements including speculation or
stated beliefs about future events, such as market and economic
conditions, company or security performance, or other projections.
Forward-looking statements are based on the opinions and estimates of management at the date the information is given, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking statements.
Canada Pacific Investment Group Ltd. (CPI) limits of involvement
CPI Group’s scope of involvement is strictly limited to the production
and distribution of marketing materials and information regarding
the resort project and investment opportunity in CopperStone OM
I. CPI will not and cannot offer financial, suitability or tax advice to
the prospective investor. CPI encourages all prospective investors to
seek independent advice from their personal financial advisor.
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copperstone resort phase ii investment opportunity

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