Parkit to acquire two industrial assets for $ 17,000,000; Problem options
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Toronto, Ontario – (Newsfile Corp. – January 4, 2022) – Business Parkit inc. (TSXV: PKT) (“Parkit” or the “Company”), has agreed to acquire two Class A located industrial assets from two groups of sellers (collectively, the “Sellers“) for an aggregate purchase price of $ 17,000,000, subject to customary adjustments (the”AcquisitionsThe two acquisitions are at arm’s length. The acquisitions are expected to close in the first quarter of 2022.
The acquisitions total 141,031 square feet and are located in Boisbriand, Quebec, and London, Ontario.
Purchase price and payment
The aggregate purchase price of the Acquisitions is $ 17,000,000, subject to adjustments, and is payable by the issuance of approximately $ 2,500,000 of Parkit common stock for one of the assets on the basis an agreed VWAP ending three days before closing, with the remainder of the aggregate purchase price paid with available funds and mortgage assumption.
Steven Scott, Chairman of the Board of Parkit, said: “The acquisitions begin the year by adding a strategic asset in London, Ontario, and entering the Quebec market with a Class A industrial property located in the suburbs of Montreal.
Conditions precedent to acquisitions
Parkit’s obligations to complete the acquisitions are subject to conditions, including, but not limited to: satisfactory due diligence and satisfactory environmental site assessment reports. The obligations of Parkit and the Sellers to complete the closing of the Acquisitions are subject to the satisfaction of other customary closing conditions and include, for one of the Acquisitions, acceptance of the TSX Venture Exchange (“TSXVNeither of the vendor group’s two acquisitions is conditional or conditional on the completion of the other acquisition.
There can be no assurance that the Acquisitions will be completed as proposed or at all. The TSX Venture Exchange has in no way reviewed the merits of the acquisitions and has neither approved nor disapproved the contents of this press release. No new insider will be created and no change of control will take place following the Acquisitions.
Issue of options
Certain officers, employees, consultants and directors received a total of 3,400,000 options under the Company’s option plan in effect on December 31, 2021, each of these options being exercisable in one common share at a price of exercise $ 1.50 at any time on or before the tenth anniversary of its issuance. Each of the options acquired upon grant.
Of the options granted above, 3,125,000 options were granted to the directors and officers of the Company. The Company avails itself of the exemptions from the formal assessment and minority approval requirements of Multilateral Instrument 61-101 and Policy 5.9 of the TSX Venture Exchange, for the issuance of these options, in accordance with the Section 5.5 (b) (Issuer not listed on specified markets) and Section 5.7 (a) (Fair market value not exceeding 25% of market capitalization) of NI 61-101, respectively.
About Parkit Entreprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of industrial properties strategically located in key markets in Canada, with a focus on the Greater Toronto Area + (“RGT +”), Ottawa and Montreal, to supplement its parking assets across the United States. Parkit’s common shares are listed on the TSX Venture Exchange (symbol: PKT).
For more information, please contact Mr. Carey Chow, Mr. Iqbal Khan or Mr. Steven Scott:
Phone number: 1-888-627-9881
Email: [email protected]
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 laws. All statements, other than statements of historical fact, included in this document are forward-looking information. In particular, this press release contains forward-looking information concerning: statements concerning the proposed acquisitions, including the closing and timing thereof, the method of payment for the proposed acquisitions and the satisfaction of the conditions relating to the proposed acquisitions; and Parkit’s strategy and direction in acquiring high quality, strategically located industrial properties, with a focus on the GTA +, in Ottawa and Montreal. This forward-looking information reflects Parkit’s current beliefs and is based on information currently available for Parkit and on assumptions that Parkit considers reasonable. These assumptions include, but are not limited to: the completion of a satisfactory due diligence by Parkit with respect to the proposed acquisitions; satisfactory compliance with all conditions precedent to the proposed acquisitions, including satisfactory due diligence and satisfactory environmental site assessment reports; receipt of all required approvals for the proposed acquisitions, including any third party consent; market acceptance of the proposed acquisitions; the receipt and accuracy of the value of appraisals received for proposed acquisitions; the level of activity of industrial real estate and the economy in general; consumer interest in Parkit’s services and products; and Parkit’s continued response and ability to navigate the COVID-19 pandemic are consistent or better than his ability and response to date. Forward-looking information is subject to risks and uncertainties which 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 future Parkit operations; competetion; changes in legislation, including environmental legislation, affecting Parkit; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and assessments; the lack of skilled and skilled labor or the loss of key individuals; risks associated with the COVID-19 pandemic, including various recommendations, orders and actions by government authorities to attempt to limit the pandemic, including travel restrictions, border closures, non-essential business closures, interruptions service, quarantines, self-isolation, shelter-in-place, social distancing and mandatory vaccination policies, disruption of markets, economic activity, funding, supply chains and sales channels, and deterioration general economic conditions, including a possible national or global recession; and the impact the COVID-19 pandemic may have on Parkit, which may include: a short-term delay in customer payments, an increase in accounts receivable and an increase in losses on accounts receivable; decrease in demand for the services offered by Parkit; and a deterioration in the financial markets which 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 which could cause actual results to differ materially from those contained in forward-looking information, other factors may cause results to not be as anticipated, estimated or expected. . Therefore, 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 it is based will be achieved. This information, although considered reasonable by management at the time of its preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The 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 Parkit’s expectations as of the date of this press release and, therefore, is subject to change after this 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/109078