TORONTO, Aug. 12, 2021 (GLOBE NEWSWIRE) — 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:
Contact Number: 1-888-627-9881
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.