Parkit Enterprise Reports First Quarter 2021 Financial ResultsToronto, Ontario - May 26, 2021- PARKIT ENTERPRISE INC. (TSXV: PKT) (OTC: PKTEF)
"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 $(0.01) for the quarter ended April 30, 2020. The loss for the quarter ended March 31, 2021 resulted from one time transaction costs and land transfer taxes on the purchase of its investment properties, a loss from its equity-accounted investees, higher than normal general and administration costs, depreciation and finance costs during the quarter ended March 31, 2021.
A summary of the results of operations for the quarter ended March 31, 2021 and the quarter ended April 30, 2020 are set forth below:
|Three months ended|
March 31, 2021
|Three months ended|
April 30, 2020
|Investment properties revenue||$||594,696||$||-|
|Investment properties expenses||(232,423)||-|
|Net rental income||362,273||-|
|Other expenses (income)|
|Share of loss from equity-accounted investees||315,855||322,927|
|General and administrative expenses and other income||338,290||51,801|
|Transaction costs and land transfer taxes||1,103,901||-|
|Loss before tax||(1,825,915)||(374,728)|
|Income tax expense||(317)||345|
|Net loss and comprehensive loss for the period||$||(1,826,232)||$||(374,383)|
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:
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 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.