PARKIT ENTERPRISE INC. (TSXV: PKT) (“Parkit“) is pleased to announce that, further to its August 25, 2021 press release, it has completed the acquisition of a class A industrial property in Ottawa.
Acquisition of Ottawa Property
Parkit acquired 1151 Parisien St, Ottawa (the “Property“) for an aggregate purchase price of $13,250,000 (the “Acquisition“). The Property is approximately 75,000 square feet of multi-tenanted light industrial space on approximately 4 acres of land.
Steven Scott, the Chair of Parkit, stated, “The Acquisition adds another urban industrial property with strong cash flows in the growing Ottawa market.”
Purchase Price and Payment
The purchase of the Property for $13,250,000, subject to standard adjustments, and was satisfied through funds on hand.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+“), Ottawa and Montreal, to complement its parking assets across the United States. Parkit’s Common Shares are listed on TSX Venture Exchange (Symbol: PKT).
For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:
Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. In particular, this news release contains forward-looking information in relation to: Parkit’s strategy and focus regarding acquiring high-quality and strategically located industrial properties with a focus on the GTA+, Ottawa and Montreal. This forward-looking information reflects Parkit’s current beliefs and is based on information currently available to Parkit and on assumptions Parkit believes are reasonable. These assumptions include, but are not limited to: the level of activity in the industrial real estate business and the economy generally; consumer interest in Parkit’s services and products; and Parkit’s continued response and ability to navigate the COVID-19 pandemic being consistent with, or better than, its ability and response to date. Forward-looking information is subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such forward-looking information. These risks, uncertainties, and factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive third party or regulatory approvals; the actual results of Parkit’s future operations; competition; changes in legislation, including environmental legislation, affecting Parkit; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; lack of qualified, skilled labour or loss of key individuals; risks related to the COVID-19 pandemic including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, service disruptions, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; and the impact that the COVID-19 pandemic may have on Parkit which may include: a short-term delay in payments from customers, an increase in accounts receivable and an increase of losses on accounts receivable; decreased demand for the services that Parkit offers; and a deterioration of financial markets that could limit Parkit’s ability to obtain external financing. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Parkit as of the date of this news release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
TORONTO, Aug. 25, 2021 — PARKIT ENTERPRISE INC. (“Parkit”) (PKT-TSXV) is pleased to announce that it has agreed to acquire a class A industrial property in Ottawa.
Acquisition of Ottawa Property
Parkit has entered into an asset purchase agreement, with an arms length vendor (the “Vendor”), pursuant to which Parkit has agreed to acquire a property in Ottawa, Ontario (the “Property”) for an aggregate purchase price of $13,250,000, subject to customary adjustments (the “Acquisition”). It is anticipated that the Acquisition will be completed on or before October 15, 2021. The Property is approximately 75,000 square feet of multi-tenanted light industrial space on approximately 4 acres of land. The Property is consistent with our philosophy of focusing on specific geographies.
Steven Scott, the Chair of Parkit, stated, “The Acquisition adds another urban industrial property with strong cash flows in the growing Ottawa market.”
Purchase Price and Payment
The purchase of the Property for $13,250,000, subject to standard adjustments, will be satisfied through funds on hand.
Conditions Precedent to the Acquisition
The obligations of Parkit to complete the Acquisition is subject to conditions including, but not limited to: satisfactory due diligence and satisfactory environmental site assessment reports. The obligations of both Parkit and the Vendor to complete the closing of the Acquisition are subject to the satisfaction of other customary closing conditions.
Other Information
There can be no assurance that the Acquisition will be completed as proposed or at all. The TSX Venture Exchange has in no way passed upon the merits of the Acquisition and has neither approved nor disapproved the contents of this news release. No new insiders will be created, nor will any change of control occur, as a result of the Acquisition.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States. Parkit’s Common Shares are listed on TSX Venture Exchange (Symbol: PKT).
For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:
Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. In particular, this news release contains forward-looking information in relation to: statements regarding the proposed Acquisition, including the closing and the timing thereof, the method of payment for the proposed Acquisition and the satisfaction of conditions in relation to the proposed Acquisition; and Parkit’s strategy and focus regarding acquiring high-quality and strategically located industrial properties with a focus on the GTA+, Ottawa and Montreal. This forward-looking information reflects Parkit’s current beliefs and is based on information currently available to Parkit and on assumptions Parkit believes are reasonable. These assumptions include, but are not limited to: the completion of satisfactory due diligence by Parkit in relation to the proposed Acquisition; the satisfactory fulfilment of all of the conditions precedent to the proposed Acquisition including satisfactory due diligence and satisfactory environmental site assessment reports; the receipt of all required approvals for the proposed Acquisition, including any third party consents; market acceptance of the proposed Acquisition; the receipt of, and accuracy of the value of, appraisals received for the proposed Acquisition; the level of activity in the industrial real estate business and the economy generally; consumer interest in Parkit’s services and products; and Parkit’s continued response and ability to navigate the COVID-19 pandemic being consistent with, or better than, its ability and response to date. Forward-looking information is subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such forward-looking information. These risks, uncertainties, and factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive third party or regulatory approvals; the actual results of Parkit’s future operations; competition; changes in legislation, including environmental legislation, affecting Parkit; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; lack of qualified, skilled labour or loss of key individuals; risks related to the COVID-19 pandemic including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, service disruptions, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; and the impact that the COVID-19 pandemic may have on Parkit which may include: a short-term delay in payments from customers, an increase in accounts receivable and an increase of losses on accounts receivable; decreased demand for the services that Parkit offers; and a deterioration of financial markets that could limit Parkit’s ability to obtain external financing. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Parkit as of the date of this news release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario – Parkit Enterprise Inc. (TSXV: PKT) (“Parkit” or the “Company“) reported the Company’s second quarter results. Steven Scott, Chair, commented:
“Parkit continues its transition to a focused industrial real estate platform and makes progress towards expanding existing properties.”
2021 Second Quarter Results and Recent Business Highlights
- Revenues and net rental income. Revenues and net rental income continued to increase as we onboard and integrate additional investment properties. The investment properties revenue for the three months ended June 30, 2021 rose to $1,327,495 compared to nil for the three months July 31, 2020. Net rental income for the three months ended June 30, 2021 rose to $799,573, compared to nil for the three months ended July 31, 2020.
- Significant liquidity position. Cash and cash equivalents were $82,382,652 for the quarter ended June 30, 2021, compared to $696,281 for the quarter ended July 31, 2020.
- Parking operations stabilizing. Parkit’s parking joint ventures reported a profit of $2,400 for the 3 months ended June 30, 2021, compared to a loss of $359,780 for the 3 months ended July 31, 2020. This is the first quarter the results of the joint ventures which have been positive since the beginning of the pandemic. The Company expects the parking results to continue to improve as the effects of the pandemic diminish.
- Loss for the period. The Company had a loss for the three months ended June 30, 2021 of $1,683,768, or a basic and diluted loss per share of $0.01, compared to a loss for the three months ended July 31, 2020 of $506,431, or a basic and diluted loss per share of $0.01. The loss for the quarter ended June 30, 2021 resulted from a one time charge for share-based compensation of $1,667,520, granted to various optionees, valued using the Black-Scholes model.
- Funds from operations (“FFO”) increased for the period. Parkit had positive FFO, a non-IFRS measure, of $412,214 for the three months ended June 30, 2021, compared to a loss of $64,743 for the three months ended July 31, 2020.
- Subsequent to the quarter, Parkit completed the acquisition of 415 Legget Dr, Ottawa, ON which has 194,661 square feet of gross leasable area on approximately 18 acres of land. The aggregate purchase price of $24,500,000 was satisfied with funds on hand.
- Continued focus on environmental initiatives. Parkit joinedthe Canada Green Building Council, a leading not-for-profit national environmental organization. Parkit is increasingly prioritizing environmental investments in its capital allocation process, including the possible acquisition and development of green buildings as well as obtaining green certifications in its existing portfolio.
Financial Information
A summary of the results of operations for the three and six months ended June 30, 2021 and the three and six months ended July 31, 2020 are set forth below:
| Select Financial Information (Unaudited) | Three months ended June 30, 2021 | Three months ended July 31, 2020 | Six months ended June 30, 2021 | Six months ended July 31, 2020 | |||||
| Operating results | |||||||||
| Revenue from investment properties | $ | 1,327,495 | $ | – | $ | 1,922,191 | $ | – | |
| Net rental income | $ | 799,573 | $ | – | $ | 1,161,846 | $ | – | |
| Share of profit (loss) – equity-accounted investees | $ | 2,400 | $ | (359,780) | $ | (313,455) | $ | (682,707) | |
| Net loss | $ | (1,683,768) | $ | (506,431) | $ | (3,510,000) | $ | (880,814) | |
| Net loss per share | $ | (0.01) | $ | (0.01) | $ | (0.02) | $ | (0.03) | |
| Funds from Operations | $ | 412,214 | $ | (64,743) | $ | 212,659 | $ | (216,243) | |
| FFO per share | $ | 0.00 | $ | (0.00) | $ | 0.00 | $ | (0.01) | |
| Liquidity and Leverage | |||||||||
| Cash | $ | 82,382,652 | $ | 696,281 | $ | 82,382,652 | $ | 696,281 | |
Operational Highlights
Parkit continues to execute on its operational objectives:
- Leasing at elevated rental spreads. Tenants have renewed at market rental rates, >40% over the prior rental rates.
- Low vacancies. Parkit only has vacancies in its development properties and does not have any current vacancy at its investment properties.
- Strong rent collections. Parkit’s rent collections remain resilient through the pandemic as the Company increased its collections for the three months and six months ended June 30, 2021 up to 99% and 98%, respectively.
Parkit is focused on continuing its shift into industrial real estate by growing its portfolio and maximizing cash flows from its investment properties, while stabilizing its parking operations.
Further Information
For comprehensive disclosure of Parkit’s performance for the three months and six months ended June 30, 2021 and its financial position as at such date, please see Parkit’s Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis for the three months and six months ended June 30, 2021 filed on SEDAR at www.sedar.com.
Non-IFRS Financial Measures
Management uses both IFRS and non-IFRS Measures to assess the financial and operating performance of the Company’s operations. These non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The non-IFRS Measures referenced in this news release include the following:
- Funds from Operations (“FFO“) – is a non-IFRS measure of operating performance as it focuses on cash flow from operating activities. REALPAC is the national industry association dedicated to advancing the long-term vitality of Canada’s real property sector. REALPAC defines FFO as net income (calculated in accordance with IFRS), adjusted for, among other things, depreciation, transaction costs, gains and losses from property dispositions, foreign exchange, as well as other non-cash items, and this is how the Company determines FFO. The Company believes that FFO can be a beneficial measure, when combined with primary IFRS measures, to assist in the evaluation of the Company’s ability to generate cash and evaluate its return on investments as it excludes the effects of real estate amortization and gains and losses from the sale of real estate, all of which are based on historical cost accounting and which may be of limited significance in evaluating current performance.
FFO should not be viewed as an alternative to, in isolation from, or superior to, net income or cash flow from operations, or results from Parkit’s comprehensive operations, respectively, or other measures calculated in accordance with IFRS. FFO should not be interpreted as an indicator of cash generated from operating activities and is not indicative of cash available to fund operating expenditures, or for the payment of cash distributions. FFO is simply an additional measure of operating performance which highlight trends in Parkit’s core business that may not otherwise be apparent when relying solely on IFRS financial measures. Parkit’s management also uses these non-IFRS measures in order to facilitate operating performance comparisons from period to period and to prepare operating budgets. In addition, the Company’s definition of FFO may differ from that of other issuers.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+“), Ottawa and Montreal, to complement its parking assets across the United States. Parkit’s Common Shares are listed on TSXV (Symbol: PKT).
For more information, please contact Mr. Steven Scott, Mr. Iqbal Khan or Mr. Carey Chow:
Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. In particular, this press release contains forward-looking information in relation to: the Company’s strategy and focus regarding expanding existing properties and acquiring strategically located industrial properties with a focus on the GTA+, Ottawa and Montreal; Parkit’s prioritizing environmental investments including green buildings and green certifications; and Parkit’s expectation that parking results will to continue to improve as the effects of the pandemic diminish. This forward-looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to: the level of activity in the industrial real estate business and the economy generally; continued consumer interest in the Company’s services and products; the Company’s continued ability to acquire properties that are in-line with its strategic focus, including prioritizing environmental investments; the Company’s past results continuing to be an indicator of future results; the diminishing effects of the COVID-19 pandemic in Canada, the United States, and elsewhere; and the Company’s continued response and ability to navigate the COVID-19 pandemic being consistent with, or better than, its ability and response to date. Forward-looking information is subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such forward-looking information. These risks, uncertainties, and factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive third party or regulatory approvals; the actual results of the Company’s future operations; competition; changes in legislation, including environmental legislation, affecting the Company; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; lack of qualified, skilled labour or loss of key individuals; risks related to the COVID-19 pandemic including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, service disruptions, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; and the impact that the COVID-19 pandemic may have on the Company which may include: a short-term delay in payments from customers, an increase in accounts receivable and an increase of losses on accounts receivable; decreased demand for the services that the Company offers; and a deterioration of financial markets that could limit the Company’s ability to obtain external financing. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario — August 12, 2021 – Parkit Enterprise Inc. (“Parkit” or the “Company”) (TSXV:PKT), is pleased to announce the proposed purchase of a neighbouring industrial real estate asset and that it has filed its articles of continuance to continue Parkit out of the Province of British Columbia and into the Province of Ontario under the provisions of the Business Corporations Act (Ontario) (the “Continuance”).
Industrial Real Estate Acquisition
Parkit has entered into an asset purchase agreement (the “Purchase Agreement”), with a private company (“Vendor”), pursuant to which Parkit has agreed to acquire 720 Tapscott Rd, Toronto, Ontario (the “Property”) for an aggregate purchase price of $3,600,000, subject to customary adjustments (the “Proposed Acquisition”). The Vendor is not a related party to Parkit and the Proposed Acquisition constitutes an arm’s length transaction for the purposes of the TSX Venture Exchange (“TSXV”) policies. It is anticipated that the Proposed Acquisition will be completed in Q3.
Property and Expansion
720 Tapscott Rd complements Parkit’s existing platform as it neighbours two of the Company’s properties, 5600 and 5610 Finch Ave East. After closing the Proposed Acquisition, Parkit will own a contiguous 14 acre parcel of land. The Company plans to augment its expansion of 5610 Finch Ave East by adding an additional 60,000+ square feet of rentable industrial space on 5610 Finch Ave East and 720 Tapscott Rd. Upon completion, the total rentable industrial space on these two properties will be at least 175,000 square feet.
Post closing of the Proposed Acquisition and completion of the planned expansions, Parkit will own over 300,000 square feet of industrial space on 14 acres of land on the combined 5600, 5610 Finch Ave East and 720 Tapscott Rd properties.
Steven Scott, Chairman, states, “The Tapscott Rd acquisition is a continuation of our strategy to acquire high-quality industrial properties in the Greater Toronto Area. The property provides a valuable expansion opportunity and optionality in the future.”
Purchase Price and Payment
The purchase of the Property for $3,600,000, subject to standard adjustments, will be satisfied through the issuance of $100,000 of common shares in the capital of the Company and $3,500,000 from funds on hand. The common shares issued in connection with the Proposed Acquisition will be subject to a hold period of four months and one day following the date of issuance.
Conditions Precedent to the Acquisitions
The closing of the Proposed Acquisition is subject to certain conditions including, but not limited to, completion of satisfactory due diligence, satisfactory environmental site assessment reports and acceptance of the TSXV.
Continuance to Ontario
The Continuance to Ontario became effective on July 9, 2021. The Continuance was approved by the shareholders of Parkit at the Annual and Special General Meeting of Shareholders held on April 29, 2021.
No action will be required by existing shareholders with respect to the Continuance.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States. Parkit’s Common Shares are listed on TSXV (Symbol: PKT).
For more information, please contact Mr. Steven Scott, Mr. Iqbal Khan or Mr. Carey Chow:
Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Information: This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. In particular, this press release contains forward-looking information in relation to: statements regarding the Proposed Acquisition, including the closing and the timing thereof, the issuance of common shares to satisfy a portion of the purchase price and the satisfaction of conditions in relation to the Proposed Acquisition; statements and expansion plans for the Company’s properties; and the Company’s strategy and focus regarding acquiring high-quality and strategically located industrial properties with a focus on the GTA+, Ottawa and Montreal. This forward-looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to: the completion of satisfactory due diligence by the Company in relation to the Proposed Acquisition; the satisfactory fulfilment of all of the conditions precedent to the Proposed Acquisitions including satisfactory due diligence and satisfactory environmental site assessment reports; the receipt of all required approvals for the Proposed Acquisition, including TSXV acceptance and any third party consents; the issuance of Parkit common shares as disclosed above as part of the purchase price for the Proposed Acquisition; market acceptance of the Proposed Acquisition; the receipt of, and accuracy of the value of, appraisals received for the Proposed Acquisition; the level of activity in the industrial real estate business and the economy generally; consumer interest in the Company’s services and products; and the Company’s continued response and ability to navigate the COVID-19 pandemic being consistent with, or better than, its ability and response to date. Forward-looking information is subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such forward-looking information. These risks, uncertainties, and factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive third party or regulatory approvals; the actual results of the Company’s future operations; competition; changes in legislation, including environmental legislation, affecting the Company; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; lack of qualified, skilled labour or loss of key individuals; risks related to the COVID-19 pandemic including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, service disruptions, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; and the impact that the COVID-19 pandemic may have on the Company which may include: a short-term delay in payments from customers, an increase in accounts receivable and an increase of losses on accounts receivable; decreased demand for the services that the Company offers; and a deterioration of financial markets that could limit the Company’s ability to obtain external financing. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario – July 7, 2021 – Parkit Enterprise Inc. (TSXV: PKT) (OTC: PKTEF) (“Parkit” or the “Company“) is pleased to announce that it has completed its previously announced (see press release dated June 28, 2021) arm’s length purchase of 415 Legget Drive, Ottawa, Ontario (the “Property“).
Ottawa Property Purchase
The Property is currently 200,000 square feet of flex and industrial space on approximately 18 acres of land. Along with repositioning the property to take advantage of industrial demand, the Company will look to expand the Property by adding at least 150,000 additional square feet of industrial space (the “Expansion“).
Steven Scott, the Chair of Parkit, states, “The acquisition adds another urban industrial property in the growing Ottawa market. The Property provides a valuable expansion opportunity and optionality in the future.”
The purchase price of $24,500,000 plus customary closing costs was satisfied through funds on hand.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States. Parkit’s Common Shares are listed on TSX-V (Symbol: PKT).
For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:
Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Information: This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, “may” or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: statements as to expansion plans for the Company’s properties. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario – Parkit Enterprise Inc. (TSXV: PKT) (OTC: PKTEF) (“Parkit” or the “Company“), announced today that certain officers and directors have been issued an aggregate of 3,695,000 options pursuant to the Company’s option plan effective June 30, 2021 with each such option being exercisable into one common share at an exercise price of $1.50 at any time on or before the tenth anniversary of its issuance. Each of the options vested on grant.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States. Parkit’s Common Shares are listed on TSX-V (Symbol: PKT).
For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:
Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Toronto, Ontario — June 28, 2021 – Parkit Enterprise Inc. (TSXV: PKT) (OTC: PKTEF) (“Parkit” or the “Company“) is pleased to announce the purchase of an Ottawa property and a change in management.
Acquisition of Ottawa Property
Parkit has entered into an asset purchase agreement, with a private company, pursuant to which Parkit has agreed to acquire 415 Legget Drive, Ottawa, Ontario (the “Property”) for an aggregate purchase price of $24,500,000, subject to customary adjustments (the “Acquisition”). The Acquisition is an arm’s length transaction. It is anticipated that the Acquisition will be completed on or before July 10, 2021.
The Property is currently 200,000 square feet of flex and industrial space on approximately 18 acres of land. Along with repositioning the property to take advantage of industrial demand, the Company will look to expand the Property by adding at least 150,000 additional square feet of industrial space (the “Expansion”).
Steven Scott, the Chair of Parkit, states, “The Acquisition adds another urban industrial property in the growing Ottawa market. The Property provides a valuable expansion opportunity and optionality in the future.”
Purchase Price and Payment
The purchase of the Property for $24,500,000, subject to standard adjustments, will be satisfied through funds on hand.
Conditions Precedent to the Acquisition
The closing of the Acquisition is subject to certain customary closing conditions.
Change in Management
Parkit is also pleased to announce that Iqbal Khan has been named as Chief Executive Officer of Parkit and Carey Chow has been named as Co-CFO of Parkit, effective immediately.
Mr. Khan has over 20 years of senior management experience, including as CFO and Director of StorageVault Canada Inc. (“StorageVault”), CFO and Principal of the Access Group (“Access”), both of which he will continue, and was the prior President of RecordXpress, a records management business. At StorageVault and Access he focuses on the acquisition, financing, management and development of storage, industrial, multi-residential and commercial real estate in Canada. Mr. Khan has a chartered professional accounting designation (CPA, CA).
Mr. Chow has more than 20 years of senior management experience, including formerly as CFO of a number of growth stage private companies in various industries. Mr. Chow has a chartered professional accounting designation (CPA, CA).
Avi Geller has resigned his role as CEO of the Company and JoAnne Odette will continue as Co-CFO on an interim basis for a transition period.
“The Board thanks Avi Geller and JoAnne Odette for their past service and continued support as the Company transitions into a leading industrial platform. The Board is very pleased to announce the appointment of Iqbal as Chief Executive Officer and Carey as Co-Chief Financial Officer. Iqbal is a seasoned, disciplined and well-respected public company officer and will lead Parkit’s growth strategy as an industrial real-estate platform,” said Steven Scott, Parkit’s Chair. “Carey’s extensive financial experience will complement Iqbal and the Company as Parkit expands its operations into key markets throughout Canada.”
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States. Parkit’s Common Shares are listed on TSX-V (Symbol: PKT).
For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:
Investor Relations
Contact Number: 1-888-627-9881
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Information: This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, “may” or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: statements as to the closing of the Acquisition and the timing thereof; expansion plans for the Company’s properties; and statements regarding the Company’s plans for expansion. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario–(Newsfile Corp. – May 26, 2021) – Parkit Enterprise Inc. (TSXV: PKT) (OTC: PKTEF) (“Parkit” or the “Company“), an industrial real estate growth vehicle and parking platform, is pleased to highlight recent business activity and provides its financial results for the first quarter ended March 31, 2021.
“We continue to execute on our transition to an industrial real estate platform as demonstrated by our acquisitions and the performance of our investment properties,” said Steven Scott, Chair of the Board.
Recent Business Highlights
- Completed acquisition of two additional industrial properties.
- 5610 Finch Ave East, Toronto, Ontario which has 54,852 square feet of gross leasable area on approximately 5.5 acres of land. The aggregate purchase price of $12,250,000 was satisfied with funds on hand.
- 1165 Kenaston St, Ottawa, Ontario which has 168,186 square feet of gross leasable area on approximately 7.4 acres of land. The aggregate purchase price of $28,500,000, was satisfied through the issuance of an aggregate of 2,667,000 common shares of the Company at a deemed price of $1.50 per share with the remainder of the purchase price being satisfied with funds on hand.
- Completed two private placements. In February 2021 and March 2021, Parkit completed two private placements for aggregate proceeds of $125,261,003 less fees through the issuance of 115,928,390 common shares of the Company at a price of $0.95 for the February 2021 private placement and $1.50 per share for the March 2021 private placement.
- Board of Directors Addition. In April 2021, the shareholders elected Blair Tamblyn as a new member of the Board of Directors at the annual meeting of shareholders. Mr. Tamblyn now serves as Chair of the Company’s Audit Committee. Mr. Tamblyn is currently Chief Executive Officer and Co-Founder of Timbercreek Asset Management and Chair of the Board for Timbercreek Financial and brings a wealth of experience to the Company. The remaining incumbent board members were also re-elected by shareholders at the meeting.
First Quarter 2021 Financial Results
- Liquidity position. Cash and cash equivalents were $82,421,631 for the quarter ended March 31, 2021, compared to $9,140,322 for the period ended December 31, 2020, as a result of the proceeds from the two private placements.
- Investment properties. As a result of the additional investment properties which were acquired during the period, the carrying value of investment properties increased to $76,812,520 for the quarter ended March 31, 2021, compared to $36,250,000 for the period ended December 31, 2020.
- Debt. The Company’s debt decreased to $17,462,911 for the quarter ended March 31, 2021, compared to $25,923,039 for the period ended December 31, 2020, as a result of the repayment of vendor take back loans of $8,350,168.
- Investment properties operations. The Company had revenues and expenses from its investment properties for the quarter ended March 31, 2021, as a result of its shift in strategy to an industrial real estate platform, compared to no operations for the quarter ended April 30, 2020.
- Loss for the period. The Company had a loss for the quarter ended March 31, 2021 of $(1,826,232), or a basic and diluted loss per share of $(0.01), compared to a loss for the quarter ended April 30, 2020 of $(374,383), or a basic and diluted loss per share of $(0.01) for the quarter ended April 30, 2020. The loss for the quarter ended March 31, 2021 resulted from one time transaction costs and land transfer taxes on the purchase of its investment properties, a loss from its equity-accounted investees, higher than normal general and administration costs, depreciation and finance costs during the quarter ended March 31, 2021.
Financial Information
A summary of the results of operations for the quarter ended March 31, 2021 and the quarter ended April 30, 2020 are set forth below:
| Three months ended March 31, 2021 | Three months ended April 30, 2020 | |||||
| Investment properties revenue | $ | 594,696 | $ | – | ||
| Investment properties expenses | (232,423) | – | ||||
| Net rental income | 362,273 | – | ||||
| Other expenses (income) | ||||||
| Share of loss from equity-accounted investees | 315,855 | 322,927 | ||||
| General and administrative expenses and other income | 338,290 | 51,801 | ||||
| Transaction costs and land transfer taxes | 1,103,901 | – | ||||
| Depreciation | 187,480 | – | ||||
| Finance costs | 242,662 | – | ||||
| 2,188,188 | 374,728 | |||||
| Loss before tax | (1,825,915) | (374,728) | ||||
| Income tax expense | (317) | 345 | ||||
| Net loss and comprehensive loss for the period | $ | (1,826,232) | $ | (374,383) | ||
Further Information
For comprehensive disclosure of Parkit’s performance for the three months ended March 31, 2021 and its financial position as at such date, please see Parkit’s Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis for the three months ended March 31, 2021 filed on SEDAR at www.sedar.com.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States.
For further information, contact the Company:
Steven Scott
Tel: 1-888-627-9881
ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, “may” or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario — Parkit Enterprise Inc. (TSXV: PKT) (“Parkit“, “Company” or the “Corporation“), an industrial real estate growth vehicle and parking platform, is pleased to report the audited financial results for the two-month transitional fiscal year from November 1, 2020 to December 31, 2020 with a comparative to the audited financial statements for the twelve months ended October 31, 2020. The two-month transitional period resulted from the Company’s previously announced change of its fiscal year-end to December 31 from October 31.
Two-Month Audited Transitional Fiscal Year to December 31, 2020 Results
In the two-month period ending December 31, 2020, the Company recorded a loss of $1,568,069 (October 31, 2020 Fiscal Year – $5,327,509 loss). The loss is mainly a result of transaction costs and land transfer taxes of $1,259,824 relating the acquisition of $36,250,000 of industrial assets which closed on December 29, 2020. As a result, the Company only had two days of revenues and expenses from these acquisitions.
Financial Information
A summary of the operating and financial results are as follows:
| Two months ended December 31, 2020 | Year ended October 31, 2020 | |||
| Investment properties revenue | $ | 17,290 | $ | – |
| Investment properties expenses | (5,974) | – | ||
| Net rental income | 11,316 | – | ||
| Other expenses (income) | ||||
| Share of loss from equity-accounted investees | 78,061 | 4,662,512 | ||
| General and administrative expenses | 233,386 | 431,460 | ||
| Transaction costs and land transfer taxes | 1,259,824 | – | ||
| Finance costs | 8,114 | – | ||
| 1,579,385 | 5,093,972 | |||
| Loss before tax | (1,568,069) | (5,093,972) | ||
| Income tax expense | – | (233,537) | ||
| Net (loss) and comprehensive loss for the period | $ | (1,568,069) | $ | (5,327,509) |
Subsequent to Year End
Subsequent to the two-month transitional year end, Parkit completed the acquisition of two additional industrial properties. The first closing occurred on March 15, 2021 for a purchase price $12,250,000 for a property in Toronto and the second closing occurred on March 18, 2021 for a purchase price $28,500,000 for a property in Ottawa (see press releases dated March 15, 2021 and March 18, 2021 for additional details).
In addition, Parkit raised gross proceeds of $125,261,004 through private placements of common shares on February 17, 2021 and March 18, 2021 which the Company plans to use for acquisitions in 2021 and beyond.
Our Strategy
Parkit’s industrial real estate strategy is to own and operate a portfolio of strategically located industrial properties across key markets in Canada, with a focus on the GTA+, Ottawa and Montreal. The Company is committed to:
- owning and operating a premium portfolio of industrial and parking assets with strong operating fundamentals
- focusing resources on long-term cash flow and increasing value
- maximizing the value of industrial and parking assets through expansion and innovative asset management
- ensuring the Company follows progressive environmental, social and governance policies
Further Information
For comprehensive disclosure of Parkit’s performance for the two-month transitional fiscal year from November 1, 2020 to December 31, 2020 and its financial position as at such date, please see Parkit’s Consolidated Financial Statements and Management’s Discussion and Analysis for the two-month transitional fiscal year from November 1, 2020 to December 31, 2020 filed on SEDAR at www.sedar.com.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States.
For further information, contact the Company:
Tel: 604-424-8700
ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, “may” or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: the use of proceeds from the Company’s recently completed private placements, the Company’s plans to complete further acquisitions in 2021 and beyond, the Company’s strategy and the impact of COVID-19 on the Company’s business and its impact on property valuations. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario — Parkit Enterprise Inc. (TSXV: PKT) (OTC: PKTEF) (“Parkit” or the “Company“), is pleased to announce that it has closed its previously announced (see press releases dated March 1, 2021) bought deal private placement (the “Bought Deal Offering“) and the concurrent non-brokered private placement (the “Non-Brokered Offering” and together with the Bought Deal Offering, the “Offerings“) of an aggregate of 27,507,332 common shares of the Company (“Common Shares“) at a price of $1.50 per Common Share.
The Bought Deal Offering consisted of 26,841,000 Common Shares for aggregate gross proceeds of approximately $40.3 million. The Bought Deal Offering was co-led by Stifel GMP and Scotiabank. The Non-Brokered Offering consisted of 666,332 Common Shares for aggregate gross proceeds of approximately $1.0 million issued to a president’s list on the same terms as the Bought Deal Offering.
The Company plans to use the net proceeds from the sale of Common Shares for future acquisitions and for general corporate purposes.
The Common Shares are subject to a hold period under applicable Canadian securities laws expiring on July 19, 2021.
Update on Ottawa Property Purchase
The Company is also pleased to announce that it has completed its previously announced (see press release dated March 11, 2021) purchase (the “Acquisition“) of a fully tenanted 180,000 square feet Class A industrial building on 7 acres of land located in Ottawa, Ontario (the “Property“). The purchase price for the Property was $28,500,000, subject to adjustments, and was satisfied through the issuance of an aggregate of 2,667,000 Common Shares at a deemed price of $1.50 per share with the remainder of the purchase price being satisfied with funds on hand. The Common Shares issued in connection with the Acquisition are subject to a hold period under applicable Canadian securities laws expiring on July 19, 2021.
Related Party Transaction Disclosure
Pursuant to the Non-Brokered Offering, Parkit issued 56,667 Common Shares to a purchaser that is considered to be a “related party” (within the meaning of Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions (“MI 61-101“)) and TSXV Policy 5.9, making the Non-Brokered Offering a “related party transaction” (within the meaning of MI 61-101) (the “Related Party Subscription“). Parkit was exempt from obtaining a formal valuation for, and minority approval of, the Related Party Subscription pursuant to Section 5.5(b) and 5.7(1)(a) of MI 61-101, respectively.
In addition, as the vendor of the Property, Access Self Storage Inc. (the “Vendor“), is a related party to Parkit, the Acquisition is considered to be a “related party transaction” under MI 61-101 and TSXV Policy 5.9. Parkit was exempt from obtaining a formal valuation for, and minority approval of, the Acquisition pursuant to Section 5.5(b) and 5.7(1)(a) of MI 61-101, respectively.
The Non-Brokered Offering and the Acquisition were approved by the independent members of the Company’s board of directors with no contrary views or abstentions by any director. The material change report to be filed in relation to the Offerings and the Acquisition will not be filed at least 21 days prior to the issuance of the Common Shares under the Related Party Subscription and the Acquisition, as contemplated by MI 61-101. Parkit believes that this shorter period is reasonable and necessary in the circumstances as the completion of the Offerings and the Acquisition occurred shortly before the issuance of the news release and the upcoming filing of the material change report in relation to the Offerings and the Acquisition.
About Parkit Enterprise Inc.
Parkit Enterprise Inc. is engaged in the acquisition, optimization and asset management of income producing industrial real estate and parking facilities across Canada and the United States. Parkit’s Common Shares are listed on TSX-V (Symbol: PKT) and on the OTC (Symbol: PKTEF).
For more information, please contact Mr. Steven Scott:
Investor Relations
Contact Number: 604-424-8700
Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Information: This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, “may” or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: statements as to the use of proceeds from the sale of Common Shares. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Toronto, Ontario — PARKIT ENTERPRISE INC. (TSXV: PKT) (OTC: PKTEF) (“Parkit” or the “Company”) is pleased to announce that it has completed the previously announced acquisition of 5610 Finch Ave East (the “Property”), for an aggregate purchase price of $12,250,000 plus customary closing costs. The purchase was funded with cash on hand.
Property and Expansion
The Property complements Parkit’s existing platform as it neighbors the Company’s 5600 Finch Ave East property. Parkit now owns the adjacent Class A industrial property totaling 54,853 square feet of rentable space on 5.5 acres of land. The Company plans to expand the Property by approximately 62,000 square feet of rentable industrial space. Upon completion of the planned expansion, the Company will own over 245,000 square feet of industrial space on over 11.6 acres of land on the combined 5600 and 5610 Finch Ave East properties.
Steven Scott, the Chair of Parkit, states, “The acquisition is a natural purchase for Parkit as it not only supports the Company’s strategy of acquiring high-quality industrial properties in the Greater Toronto Area but provides for a valuable expansion opportunity and optionality in the future.”
About PARKIT
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States.
For further information: please contact Mr. Steven Scott: Investor Relations, Contact Number: 604-424-8700, Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: statements as to the expansion opportunities and the timing thereof. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to the inability to satisfy the permitting conditions for the expansion, general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Toronto, Ontario — PARKIT ENTERPRISE INC. (TSXV: PKT) (OTC: PKTEF) (“Parkit” or the “Company”) is pleased to announce that it has agreed to acquire a property located in Ottawa, Ontario (the “Property”) for an aggregate purchase price of $28,500,000, subject to customary adjustments (the “Proposed Acquisition”). The vendor of the Property, Access Self Storage Inc. (the “Vendor”), is a related party to Parkit and the Proposed Acquisition constitutes a non-arm’s length transaction. It is anticipated that the Proposed Acquisition will be completed on March 18, 2021, concurrent with the anticipated closing of the Company’s previously announced private placement of common shares (see press releases dated March 1, 2021).
Property and Industrial Real Estate Growth
The Proposed Acquisition continues Parkit’s growth as an industrial real estate platform with the addition of a Class A industrial building with a fully tenanted 180,000 square feet of rentable space on 7 acres of land.
Steven Scott, the Chair of Parkit, states, “The Proposed Acquisition is another great purchase, which will add significant cash flows, as the Company continues to grow its platform beyond the Greater Toronto Area.”
Purchase Price and Payment
The purchase price of $28,500,000, subject to adjustments, will be satisfied through the issuance of an aggregate of 2,667,000 common shares in the capital of Parkit at a deemed price of $1.50 per share with the remainder of the purchase price being paid with funds on hand. The common shares issued in connection with the Proposed Acquisition will be subject to a hold period of four months and one day.
Conditions Precedent to the Acquisitions
The closing of the Proposed Acquisition is subject to certain conditions including, but not limited to, completion of satisfactory due diligence, obtaining first mortgage commitments, satisfactory environmental site assessment reports and acceptance of the TSX Venture Exchange (“TSXV”).
Exemption from MI 61-101 and TSXV Policy 5.9
As the Vendor is a non-arm’s length party to Parkit, the Proposed Acquisition is considered to be a “related party transaction” under Multilateral Instrument 61-101 (“MI 61-101”) and TSXV Policy 5.9. Parkit will rely on exemptions from the formal valuation and minority approval requirements of MI 61-101 and TSXV Policy 5.9, in respect of the Proposed Acquisition set forth in Section 5.5(b) (Issuer Not Listed on Specified Markets) and Section 5.7(a) (Fair Market Value Not More Than 25% of Market Capitalization) of MI 61-101, respectively.
About PARKIT
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ (“GTA+”), Ottawa and Montreal, to complement its parking assets across the United States.
For further information: please contact Mr. Steven Scott: Investor Relations, Contact Number: 604-424-8700, Email: ir@parkitenterprise.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the 1933 Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Information: This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: statements as to the closing of the Proposed Acquisition and the private placement and the timing thereof; and the receipt of regulatory approvals and other conditions precedent in connection with the closing of the Proposed Acquisition. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to the inability to satisfy the closing conditions for the Proposed Acquisition or the private placement, general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward looking information can be found in Parkit’s disclosure documents on the SEDAR website at www.sedar.com. Although Parkit has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.