Toronto, Ontario--(Newsfile Corp. - March 31, 2021) - 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.
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