# League REIT - Private REIT



## Berubeland (Sep 6, 2009)

Good day fellow members of CIMF, 

Recently in June I was sued because I allegedly defamed League REIT, in part because of my comments on this board. The recording in which the founder of the REIT told everyone that they would no longer pay distributions has been removed from their site. Currently they are trying to list the REIT (with no distributions) on the TSX. http://canadianmoneyforum.com/showt...spends-distributions-in-June?highlight=league There were also some comments made on a three year old blog post they did not like. 

Because of my charming personality, I began to investigate them and found that two of their properties are currently in foreclosure. 
http://landlordrescue.ca/league-foreclosure-files-duncan-city-center-lp/
http://landlordrescue.ca/legal-foreclosure-files-colwood-city-center-lp/

One of their properties here in Toronto is in terrible condition. I took a video of that as well..

http://landlordrescue.ca/league-investment-opportunity-50-52-arrow-road-toronto/

I'm looking to speak to anyone who may have lost money with League. 

I found lots of stuff in their OM including $99,000,000 of loans between related companies and the amounts they lost on 5 out of 6 investments. 

2011 dispositions
From Page 21 & 22 of the Financial Statements

On March 31, 2011, the REIT completed the sale of 843 King Street West, Oshawa, Ontario for a sale price of$4,500,000. The REIT realized a net loss of $611,709, including transaction costs of $551,709, on this transaction.The property was classified as held for sale as at December 31, 2010.

During 2011, the REIT disposed of its 100% interest in six residential properties in Grande Prairie, Alberta for total sale proceeds of $1,404,900. The REIT realized a net loss of $20,389, including transaction costs of $70,289, onthese transactions.

On December 30, 2011, the REIT disposed of its 100% interest in the Fort Saskatchewan Industrial Lands for a sale price of $1,335,500. The REIT realized a net > gain< of $326,761, including transaction costs of$138,739, on this transaction.

2010 dispositions and assets held for sale

On July 26, 2010, the REIT disposed of its 100% interest in 1916 Dundas Street, Whitby, Ontario for a sale price of $4,305,000. The REIT realized a net loss of $411,927 including transaction costs of $256,927 on this transaction.

During 2010, the REIT disposed of its 100% interest in three residential properties in Grande Prairie, Alberta for total sale proceeds of $622,000. The REIT realized a net loss of $50,194, including transaction costs of $52,194, on these transactions.

On December 29, 2010, the REIT disposed of its 100% interest in Kensington Centre, 12630 132 Avenue NW, Edmonton, Alberta for a sale price of $10,812,500. The REIT realized a net loss of $1,767,151, including transaction costs of $1,249,651, on this transaction.

I added up the losses… $2,861,367

This just makes me really sad, these investors are real people with real families like you and I.


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## andrewf (Mar 1, 2010)

Good for you, Rachelle, for having the courage to tell the unvarnished truth.


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## Berubeland (Sep 6, 2009)

Thing is with my posts up and Leaguereviewed websites up, investors can be forewarned to perform extra careful due diligence. At this point they're even suing Automattic Inc. the company that owns Wordpress. Jane and John Doe also have not escaped unscathed from the lawsuit.


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## rusty23 (Jan 25, 2012)

nice work! i just followed you on twitter cause i liked your work


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## Berubeland (Sep 6, 2009)

Thank you Rusty... :chuncky:

Here's today's response to the lawyer. 

http://landlordrescue.ca/lawyer-letter-3-league-response/

I don't think people like it when you post their lawyer's letter to you on the internet.


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## kcowan (Jul 1, 2010)

Hi Rachael

Good luck with your war of words with the lawyer. It is certainly makes for entertaining reading.

It would appear that you have the truth on your side. I hope that will win the day...Keith


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## Mall Guy (Sep 14, 2011)

Hi - I have been known to make the occasional comment about private REITs (not a fan) and specifically these guys (really not a fan . . . what the f*#@ is with the Blue Book anyways . . . OMG) here on CMF (by the way, remind me which once was the painting contract before becoming a real estate mogul ?). Might be time to broaden your research to include the recent events at (somewhat) associated Partners REIT (formerly Charter). . . perhaps you have a client who knows one of the former board members who tried to replace them as the manager of Partners. . . intel is always good, and of course the "enemy of my enemy is my friend, Grasshopper" . . . much luck, and safehome!

When buying a REIT, look at the platform (management, diversity, strategic plan) and the assets ! Crappy real estate is just going to continue to decline . . . or need huge capital to reposition to current market needs . . .


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## nakedput (Jan 2, 2013)

can someone inform me why this is thread worthy?


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## Berubeland (Sep 6, 2009)

Dear Naked, 

The reason why this thread is worthy is two fold, first I've been sued in BC Supreme Court over pretty mildish comments on this board which should be of interest to everyone here. I linked to their site with their recording of them telling investors that they were not getting their money back. God forbid you might slag on a company here and damage their reputation on this forum... not something any of us would ever do right?

Second, the new plan for this private REIT is to wrap up the whole shebang and unload it on the TSX. 

Many investors have had money lost to this company, I was speaking to someone today. While you may be too smart to invest in their wares, many people are not. Real people with families and kids. 

Now some people might say "oh well if they are so stupid to not do their due diligence and they lose their money too bad" in fact we have lots of laws to protect stupid or unwary people already. Everything from stop signs to the warning to wear eye protection on the hammer you buy at Home Depot. Just because they are naive doesn't give companies license to exploit their vulnerabilities.

Also Mall Guy I completely get what you are saying about the Blue Book, I think that that is the primary document they give investors, it's just more of the pink unicorns with rainbows flying out their butts real estate positivism double speak bafflegab that drives me bananas. It's written at an 8th grade reading level, but the document on which investors are supposed to rely on for their investment decisions is the Operating Memorandum. To me this is disingenuous, you put pictures of teddy bears on liquor bottles and Private REIT's shouldn't be marketing their investment products to people who cannot read an OM. This marketing is unique in REIT space. This may actually explain why there hasn't been a class action against them yet. 

That's why I think this thread is relevant.


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## lonewolf (Jun 12, 2012)

Hi,Rachelle

Do you know if investors lost money & or not get paid the interest on the prefured shares on the basket of limited partnerships or perhaps better called products ( Or what ever it is called) ? The individual partnerships were of higher risk, I was considering buying the prefured shares a few years back that were locked in for x amount of years then full investment was returned. Cant remember the exact facts but I never went through because I was scared they might be some type of ponzi scheme. 

Thanks


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## Berubeland (Sep 6, 2009)

According to recording we CMFers listened to a while back, no one was getting their money out, I'm not sure it mattered what type of share. Last I heard there were 165 investors in queue to get their money out of IGW REIT. That's the REIT they are thinking they can go public with. That transaction is not approved yet. They will list it and the investors will be able to trade their shares on the TSX. 

There are two other properties in foreclosure, Duncan City center and Colwood City center. 

There are 99 million in outstanding loans between the different companies.


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## lonewolf (Jun 12, 2012)

Rackell thanks for info

The shares I was thinking of getting could not be cashed in & could not appriciate in value for x amount of years all they did was pay interest with principal back @ end of term.

Keep us posted if the guys holding the regular shares or any shares how they make out once i.e., make money or lose money when the reit goes puplic.

Thanks


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## Jaberwock (Aug 22, 2012)

I sent for the Blue Book and OM a few years ago in response to an ad on the G&M website.

At that time they were peddling a REIT called League REIT, which was a forerunner to IGW REIT. I was not happy with what I found in their financial statements, and I decided not to invest. I am surprised they are still in business. I think the original League REIT is gone. I don't know what happened to it, but I don't see it anywhere on the web or in any of the League Offering Memoranda.


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## kcowan (Jul 1, 2010)

This company belongs on the OTC board along with the other pump and dump schemes. They have taken all the investors money and now they are looking for new money.


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## Berubeland (Sep 6, 2009)

Well I am not the only one they sued. I am just the only person they could find. Weird how anonymous commenters are difficult to track down. John Doe and Beware the Ponze... but I'm pretty sure they have sued like this before because whomever owns the site http://leaguereviewed.wordpress.com/ has taken extreme measure to conceal their identity, they also seem to have a lot of inside info. They have not been served with the documents. 

I think for most people the lawyer letters are enough to get them to remove whatever is offending them from the internet. I think at this point they probably regret filing suit, I've now discovered and posted an awful lot of damaging information about them. I've complained to the British Columbia Securities Commission about their inappropriate marketing and I'll be making the time to go to my local police station to report them as well, that's the first step to the RCMP investigation. See most people even investors who have lost money do not have the stomach to go through the proper channels to initiate these kinds of investigations. I hope someone has already done it. I do not have the proper resources as an individual to do the investigating required but I know the RCMP does. 

For instance during the Trademark Dispute, I reported the pretend "Landlord Rescue" to RECA. I did a lot of investigating and I found all their rental ads and sent over 100 pages of proof that they were unlicensed to the Real Estate Council of Alberta. Now a couple years later, they are licensed. Imagine that, now their activities are scrutinized by a lawyer and accountants and they must use a trust account etc. Plus there is a great deal of information about the principals responsible for this on my site that will stay there for a long time. This may lead other persons doing business with them to do more due diligence. 

On Monday is the deadline to put my defense in. Then I will be continuing to go to the more traditional media and contacting all the bloggers I know.


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## lonewolf (Jun 12, 2012)

Jaberwock, Rackelle or anyone

Any thoughts on centurian apartment reit.A while back the manager was interviewd on BNN as an alternative investment. If they were on BNN would it not make it less likely they are ponzi ?


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## Berubeland (Sep 6, 2009)

I interviewed Greg Romundt who is the president of Centurion REIT a few years ago, and there is an article I wrote about REIT's on Million Dollar Journey. I still hold him in high esteem. If you go to the BCSC website you can look at his offering memorandum there. I actually downloaded it the other day to look at it and compare it to the offering memorandum of League but didn't get very far before I refocused on writing my defense. 

If I were to invest in a REIT, I would look at the Offering Memorandum then I would drive to look at a couple buildings they manage to see what it looks like. Is it a decent operation? Does it look well run? 

During my League Investigations I went out to visit 50 -52 Arrow Road here in Toronto and took a movie of the site. Be forewarned like most of my movies, it may cause motion sickness. :tongue-new:






The due diligence and work you put in should be equal to the investment. Lots of these require investments of $150,000 or more so a little more work is required


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## kcowan (Jul 1, 2010)

It tells me that your video is private.


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## Berubeland (Sep 6, 2009)

I think I fixed it now... let me know...


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## kcowan (Jul 1, 2010)

Works fine now. Wow what a scary movie for potential investors! What the hell are they doing with investor money?


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## Berubeland (Sep 6, 2009)

That kcowan is the multi million dollar question and one I keep asking myself. 

See in REITs they are supposed to buy buildings that generate income. The income is used to pay investors. This is not a mystery. While there would be a short fall because they are paying huge interest rates, the investor capital should be safe enough in the buildings. So if the investors want out, sell the assets. 

But I can tell you that holding onto buildings and doing nothing with them is expensive. There are holding costs. Really I called the city and looked up the dates on their own video, and they did submit a plan for redevelopment about a year ago and then the city said to me they did not receive anything and just has notes discussing the appearance of the building.


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## Jaberwock (Aug 22, 2012)

I noticed this right at the end of the 2011 financial statements:

The REIT has guaranteed mortgages on the properties for the following related entities:

• Redux Duncan City Centre Limited Partnership
• Fort St. John Retail Limited Partnership
• IGW Residential Capital Limited Partnership
• Colwood City Centre Limited Partnership
• Wesbrooke Limited Partnership
• Eagle Landing Development Limited Partnership

It seems that the REIT is on the hook for the first mortgages on these properties, as well as for the inter-party loans.

I noticed also that IGW REIT indirectly owns about 17% of the publicly traded Partners REIT (PAR.UN), and has recently won a proxy fight to replace all of the trustees with its own nominated trustees, and retain the services of League related companies as managers.

I don't believe that these people will ever put their company through the public scrutiny of a courtroom trail, even if they survive for long enough to see their case brought to court. I am sure that their tactics are purely intended to intimidate you. I think they have picked the wrong person, because it seems you have the courage and tenacity to stand up to them.


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## Berubeland (Sep 6, 2009)

I am sending out a final call for help, and I have posted my response to their civil claim.

http://landlordrescue.ca/all-bc-lawyers/ 

I hope someone with more legal training than me will look it. It's crazy, lawyer's from Ontario could lose their license for helping me. Like I'm better equipped on my own. Even my paralegal won't even look at it. I looked up samples on the internet to make up my response.


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## liquidfinance (Jan 28, 2011)

I can't offer any advice but I will say Good Luck!


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## kcowan (Jul 1, 2010)

I would be surprised if any lawyer would look at it with just a day to respond. My initial reaction is that any lawyer would have at least 15 pages in their response. Could you pursue an extension? Failing that, submit it and don't panic. Good luck!


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## Jaberwock (Aug 22, 2012)

I have been doing a bit more digging into the IGW REIT

As of Sep 2012 the loans to related parties stood at $101 million dollars plus another $23 million write down of the loan values.

Most of the increase was to Colwood, and I found this little snippet about what they propose to do about Colwood when the whole shebang gets rolled into a new company (supposedly with the intent of going public)

On January 30, 2013, Oriana Resource Corporation and Colwood City Centre GP Inc. entered in a letter of intent to pursue a transaction to
combine the businesses into a new publicly listed company on the TSX Venture exchange. As part of this transaction, it is expected that the
loan receivable from Colwood City Centre Limited Partnership to IGW REIT LP will be exchanged into a fixed number of common and
preferred securities in the combined entity. The actual number of shares will be dependent on the negotiation of an Arrangement Agreement
between the parties, and the value of the loan outstanding on the closing date. As a result of this transaction, it is expected that IGW REIT
LP will hold a controlling stake in the new publicly listed company and, as a result, may be required to consolidate the entity.

Looks like the proposal is to use a reverse takeover of Oriana resources by Colwood - with IGW REIT taking equity in exchange for the loan. 

And none of this is mentioned in the IGW REIT offering memorandum posted on the BCSC site in April


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## Berubeland (Sep 6, 2009)

I found another foreclosure filed May 8th 2013 against Colwood by Lanyard. 

I found that they sued their lawyer. Always a good sign. 

I sent off my response and served it on the lawyer. FYI the Supreme Court of Canada does not accept emails or faxes of documents, you need to mail them a hard copy. 

I wonder if there is someone they didn't sue, I seem to be in elite company. 

Also where do I find this letter of intent so I can send it to the BCSC. I'm also looking for the original letter sent out by the original trustee's to shareholders of Partner's REIT if anyone happened to be sent a copy of this, I would love to get my hands on that.


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## Jaberwock (Aug 22, 2012)

You should be able to find all of the shareholder correspondence related to public company documents on the SEDAR site, do a search for Partners Real Estate Investment Trust.

http://www.sedar.com/FindCompanyDocuments.do

The letter of intent pertaining to the merger of Oriana Resources and Colwood LP is mentioned in a press release by Oriana at http://www.newswire.ca/en/story/110...-with-colwood-city-centre-limited-partnership.

This letter of intent is also mentioned in a paragraph on page F-319 of a 540 page prospectus filed with the BC securities commission. This prospectus is the document which describes the merger of the IGW REIT and other companies into one entity to be known as League Financial Partners Inc. This document also contains the financial statements for IGW REIT as of September 2012.

The merger and creation of a publicly traded company will allow the existing investors to dispose of their investments, although, in my opinion, they are unlikely to get back more than a few cents on the dollar given the precarious state of the finances of this group. Even that though, is better then nothing.


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## Mall Guy (Sep 14, 2011)

. . . "cowing to legal bullies and scammers is not something she can tolerate" . . . luv it :biggrin: 

I am not a lawyer (but I play one on TV . . . sorry, I know this is your life they are screwing with) but I didn't see anywhere that you counter claimed or ask that the matter be dismissed (doubtful). Perhaps issue a statement of claim in an Ontario Court, so they have to hire another lawyer? I agree that you had to file a defense, otherwise you were in danger of a default judgement. I also know the amount of energy, and stress that these things cause and require. Not trying to pile on more!

Also when a company files for an IPO (like they are planing) they have a group of lawyer, but so do the Underwriters (the iBankers raising the money). I suggest (through the SEDAR filings) that knowing who those lawyers are would not be a bad thing . . . underwriters' lawyers are a very fussy group, and they don't like bad things, like David and Goliath lawsuits. 

Another thought . . . the University of Victoria has a well regarded law school . . . maybe there is a 3 or 4 year future litigator who would work for beer (and they come with access to Law Professors !!!). Trust when I say, contact their Debate Team . . . bound to be mostly law majors, and these guys (generic term) . . . well if the Big Bang Theory was about lawyers . . . it would be them !

Respectfully submitted . . . (and keep a calendar of events . . . dates, times, phone calls, letters . . . its all paper trail at this point)

(I assume you use http://www.canlii.org)


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## Jaberwock (Aug 22, 2012)

There may not be any underwriters. These people are not doing an IPO in the normal sense of the word. They are re-organizing the company so as to bring various entities under one roof, with the intent of obtaining a TSX listing. The existing shareholders will be allocated shares in the new company. At this time I do not see any intent to issue shares to new investors, in fact the Prospectus states that "No securities are being offered".

I am surprised that League continues to advertise and solicit investors with all the reorganization going on. I noticed that their latest Offering Memorandum on the BC Securities website makes no mention of the proposed re-organization, which I find strange considering that it is dated after the issue of the Prospectus. 

If they get their public listing, the market will eventually decide what the shares are worth.


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## Berubeland (Sep 6, 2009)

A friend sent me this today http://www.watchlistnews.com/2013/0...e-acquisition-of-harris-fraser-group-limited/


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## Jaberwock (Aug 22, 2012)

Berubeland said:


> A friend sent me this today http://www.watchlistnews.com/2013/0...e-acquisition-of-harris-fraser-group-limited/


This is one of the acquisitions announced in their prospectus. Harris Fraser is a Hong Kong based investment dealer, incorporated in the BVI, and 100% owned by someone named Y Y Ng. I can only suppose that League is doing this to gain access to the Hong Kong market for financing. 

They also announced an acquisition of a small investment management company in Saskatchewan, and an investments and mutual fund dealer in Ontario.

These companies along with the IGW REIT will all be joined into a company called League Financial Partners with which they are expecting to go public.

If they do go public, the market, and not the management, will determine the value of the company and the questions about net asset value will be academic.


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## Mall Guy (Sep 14, 2011)

_"Harris Fraser has over 12,000 clients across Hong Kong, Taiwan, mainland China, Singapore, Australia, Malaysia, the Philippines and Indonesia."_ 

Wow . . . 12,000 clients, don't know the total population of all of these countries, but China alone has 1.3 B, with around 1% being billionaires . . . I was in HK in 2010, pretty sure I stood on a street corner with 12,000 people !!!


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## Berubeland (Sep 6, 2009)

Hello everyone, 

Last Saturday I got a whack of papers for an emergency injunction happening in Vancouver. League is trying to stop me from saying anything about them. I had 5 days to respond. I was working through the last of the exhibits when I came across the Notice of Hearing from BCSC. I added it to the as the last exhibit. 

I'd like to think that I had something to do with it. I sure sent them a lot of stuff related to League

http://www.bcsc.bc.ca/release.aspx?id=17902

Misconduct
10.	By recommending an investment in IGW REIT securities, without disclosing its relationship or connection to IGW REIT and LAC, LISI contravened section 13.6 of National Instrument 31-103 prohibiting a registered firm from recommending a security of a connected issuer.

11.	The Respondents’ conduct described in this Notice of Hearing was contrary to the public interest 

Also for those of you behind the Globe Paywall Tim Kiladze has an article about it. https://www.google.ca/url?sa=t&rct=...VUn7xBeCitWqzG2CQ&sig2=mgpPzD5R3kFiCWoRm2hp3g


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## james4beach (Nov 15, 2012)

Berubeland: good for you to pursuing this and doing all this work

Market regulators are so lazy and pursuing fraud/violations that it requires someone to champion the cause and push it along... I don't know anything about League but I applaud your efforts


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## Jaberwock (Aug 22, 2012)

The globe and mail news story can be found here:

https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20130619/RBIGWREITKILADZEATL

League's advertising material claims that the IGW REIT has provided a return of 8.6% annualized since 2007, based on reinvested distributions.

http://league.ca/images/investments/igw-reit-report.pdf

It now appears (from the G&M article) that there is a five year waiting list to get any cash back, and there have been no distributions since June of 2012. All the investor has is a "paper gain" based on a valuation that is very difficult to verify. 

It would be interesting to hear from anyone who has invested in this company, to learn about their experiences in dealing with these people.


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## Berubeland (Sep 6, 2009)

The latest update to my saga is that I am still waiting for the judge who reserved judgement to make his ruling about the injunction. The injunction is to decide if I can call them Ponzi Schemers and Fraudsters or if I must censor those specific phrases while awaiting the defamation case. 

Today the BCSC hearing was help but I have not heard any news. 

I also found this on SEDAR and I have no idea what it means. 

OSC NOTICE TO PUBLIC
ISSUER:
LEAGUE Financial Partners Inc.
Principal Jurisdiction - British Columbia
DATES:
Amendment to Preliminary Long Form Prospectus dated July 23, 2013
Closed on September 9, 2013
PROJECT NUMBER:
2026054

Does someone else know what this means?


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## Xoron (Jun 22, 2010)

Berubeland said:


> Amendment to Preliminary Long Form Prospectus dated July 23, 2013
> Closed on September 9, 2013
> PROJECT NUMBER:
> 2026054
> ...


To go public (and sometimes to issue debt), a company needs to file a long form prospectus with details of the company's financials, corp structure, risks, etc. Looks like they filed an ammendment to their long form prospectus.


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