TORONTO, March 30, 2022 /CNW/ - Standard Mercantile Acquisition Corp. (TSX: SMA) (the "Company") today released its financial results for the three months and year ended December 31, 2021. The audited financial statements and annual MD&A of the Company can be found at www.sedar.com or www.standardmercantileacquisition.com.
Financial Highlights & Business Update
For the three months and year ended December 31, 2021, income from operations decreased by $236 thousand and $981 thousand compared to the same periods in 2020. The decrease was primarily the result of a recovery on the incentive fee of $452 and $712 thousand in the same periods in 2020 in addition to the new share-based compensation expense in 2021 of $40 and $236 thousand as compared to the same periods in 2020. Additionally, there was a fair value adjustment on investments in mortgages in the year ended December 31, 2021. The Company recorded a fair value gain adjustment of $325 thousand resulting in a fair value adjustment of $340 thousand to the Company's investment in mortgages.
During the three months and year ended December 31, 2021, no mortgages were funded or fully repaid, although the Company did receive a substantial repayment on one of its remaining mortgages for which there was a fair value adjustment of $340 thousand. The Company's investment in existing mortgages decreased by $3.1 million, which was primarily the result of capitalized interest and a principal repayment of $3.9 million on one of the two remaining mortgages. Basic earnings per share was $0.061 and $0.083 for the three months and year ended December 31, 2021 respectively, compared to $0.61 and $0.55 in the same periods in 2020. Diluted earnings per share was $0.060 and $0.080 for the three months and year ended December 31, 2021 respectively, compared to $0.61 and $0.55 in the same periods in 2020.
About the Company
The Company holds a portfolio of two mortgages in Canada. At the 2021 annual and special meeting of the Company, the Company sought and received shareholder approval to change its name to "Standard Mercantile Acquisition Corp.", among other amendments to the Articles. The Company is focused on monetizing its remaining mortgage assets and is considering options to enable its shareholders to participate in the potential future value of the Company through transactions that could capitalize on the Company's public listing. The Company's board of directors has experience in sourcing, evaluating and executing transactions of this nature.
Forward-Looking Statements
Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". The forward-looking statements are founded on the basis of expectations and assumptions made by the Company. Details of the risk factors relating to the Company and its business are discussed under the heading "Business Risks and Uncertainties" in the Company's annual Management's Discussion & Analysis for the year ended December 31, 2021 and under the heading "Risk Factors" in the Company's Annual Information Form dated March 30, 2022, copies of which are available on the Company's SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE Standard Mercantile Acquisition Corp.
View original content: http://www.newswire.ca/en/releases/archive/March2022/31/c3821.html