Parkit Enterprise Announces Purchase of 5610 Finch Ave East
Toronto, Ontario--(Newsfile Corp. - January 25, 2021) - PARKIT ENTERPRISE INC. (TSXV: PKT) (OTC: PKTEF) ("Parkit" or the "Company") is pleased to announce that it has entered into an asset purchase agreement (the "Purchase Agreement"), with a private company (the "Vendor"), pursuant to which Parkit has agreed to purchase one property, located at 5610 Finch Ave East, Toronto, Ontario (the "Property"), for an aggregate purchase price of $12,250,000, subject to customary adjustments (the "Proposed Acquisition"). It is anticipated that the Proposed Acquisition will be financed through existing cash resources and a mortgage on the Property. 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 on or before March 31, 2021.
Property and Expansion
The Property complements Parkit's existing platform as it neighbor's the Company's 5600 Finch Road Ave East property. After closing the Proposed Acquisition, Parkit will own an additional Class A industrial property with 54,853 square feet of rentable space on 5.5 acres of land.
The Company plans to expand the Property by approximately 62,000 square feet of rentable industrial space.
Post closing of the Proposed Acquisition and completion of the planned expansions, the Company will own over 245,000 square feet of industrial space on over 11.6 acres of land on the combined 5600 and 5610 Finch Ave East properties.
Steven Scott, the Chair of Parkit, states, "The Proposed Acquisition is a natural purchase for Parkit as it not only supports the Company's strategy of acquiring high-quality industrial properties in the Greater Toronto Area but provides for a valuable expansion opportunity and optionality in the future."
Parkit Enterprise Inc. is engaged in the acquisition, optimization and asset management of income producing industrial real estate and parking facilities across Canada and the United States. Parkit's Common Shares are listed on TSX-V (Symbol: PKT) and on the OTC (Symbol: PKTEF).
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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 securities legislation. All statements, other than statements of historical fact, included herein are 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", 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 completion of the Proposed Acquisition and the terms thereof; the anticipated closing date for the Proposed Acquisition; the potential expansion of the Property; and the funds to be used for the Proposed Acquisition. This forward-looking information reflects Parkit's current beliefs and is based on information currently available to Parkit and on assumptions Parkit believes are reasonable. These assumptions include, but are not limited to: the completion of satisfactory due diligence by all parties in relation to the Proposed Acquisition; the satisfactory fulfilment of all terms and conditions contained in the purchase agreement; the receipt of all required approvals for the Proposed Acquisition; and Parkit'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 known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Parkit to be materially different from those expressed or implied by such forward-looking information. Such risks and other 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 required approvals; the actual results of Parkit's future operations; competition; changes in legislation, including environmental legislation, affecting Parkit; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations; 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 Parkit which may include: decreased demand for the services that Parkit offers; and a deterioration of financial markets that 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 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 cautioned that the foregoing list of factors is not exhaustive. 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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