to Acquire Two Industrial Assets for $17,000,000 Toronto, Ontario--(Newsfile Corp. - January 4, 2022) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit" or the "Company"), has agreed to acquire two Class A located industrial assets from two vendor groups (collectively, the "Vendors") for an aggregate purchase price of $17,000,000, subject to customary adjustments (the "Acquisitions"). Both Acquisitions are arm's length. It is anticipated that the Acquisitions will close in Q1 2022.
The Acquisitions total 141,031 square feet, are located in Boisbriand, Quebec and London, Ontario.
Purchase Price and Payment
The aggregate purchase price for the Acquisitions is $17,000,000, subject to adjustments, and is payable by the issuance of up to approximately $2,500,000 of Parkit common shares for one of the assets based on an agreed upon VWAP ending three days prior to closing, with the remainder of the aggregate purchase price being paid with funds on hand and mortgage assumption.
Steven Scott, Chair of Parkit, states, "The Acquisitions start the year off by adding a strategic asset in London, Ontario and to enter the Quebec market with a Class A industrial property located in the Montreal suburbs."
Conditions Precedent to the Acquisitions
The obligations of Parkit 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 both Parkit and the Vendors 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 ("TSXV"). Neither of the two Vendor group Acquisitions are conditional or contingent on the completion of the other Acquisition.
Other Information
There can be no assurance that the Acquisitions will be completed as proposed or at all. The TSXV has in no way passed upon the merits of the Acquisitions 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 Acquisitions.
Issuance of Options
Certain officers, employees, consultants and directors have been issued an aggregate of 3,400,000 options pursuant to the Company's option plan effective December 31, 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.
Of the options granted above, 3,125,000 options were granted to directors and officers of the Company. The Company is relying on exemptions from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9, for the issuance of these options, pursuant to 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 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).
https://www.newsfilecorp.com/release/109078