Business
Parkit Completes Acquisition of Two Industrial Assets for $22,680,000
Toronto, Ontario--(Newsfile Corp. - May 12, 2022) - Parkit Enterprise Inc.  (TSXV: PKT)...
About this update from Parkit Enterprise Inc.
[{"type":"text","content":"Parkit Completes Acquisition of Two Industrial Assets for $22,680,000Toronto, Ontario--(Newsfile Corp. - May 12, 2022) - Parkit Enterprise Inc. (TSXV: PKT) (\"Parkit\" or the \"Company\"), is pleased to announce that, further to its April 25th, 2022 news release, it has completed the acquisition of two industrial assets from two vendor groups (collectively, the \"Vendors\") for an aggregate purchase price of $22,680,000, subject to customary adjustments (the \"Acquisitions\"). One of the Acquisitions is arm's length and one is non-arm's length with SRS Realty Group Inc. (\"SRS\"), a company wholly owned by Steven Scott, a director and chair of Parkit, as the Vendor (the \"Related Party Acquisition\").The third acquisition announced on April 25th, 2022, will close later within the current quarter.Acquisition of 3455 Mainway Dr, Burlington, ON and 5300 Harvester Rd, Burlington, ONParkit acquired 3455 Mainway Dr, Burlington, ON and 5300 Harvester Rd, Burlington, ON (the \"Properties\") for an aggregate purchase price of $22,680,000. The Properties are approximately 77,299 square feet on 10.8 acres of land. Purchase Price and PaymentThe aggregate purchase price for the Acquisitions is $22,680,000, subject to adjustments, and was satisfied through the issuance of 5,885,238 common shares of Parkit for $7,000,000, assumption of a mortgage of approximately $4,500,000 and approximately $11,180,000 from funds on hand. The common shares issued in connection with the Acquisition will be subject to a hold period of four months and one day following the date of issuance.Iqbal Khan, CEO of Parkit, states, \"These acquisitions continue Parkit's momentum by adding two high quality locations to our GTA+ portfolio. The acquisitions have rents 45% below market, a WALT of 1.8 years and the ability to expand on excess land.\"Exemption from MI 61-101 and TSXV Policy 5.9As SRS is a non-arm's length party to Parkit, ‎the Related Party Acquisition is considered a \"related party transaction\" under MI 61-101 - \"Protection of Minority Security Holders in Special Transactions\" and TSXV Policy 5.9. Parkit will rely on exemptions from the formal valuation and minority approval requirements of MI 61-101 and TSXV Policy 5.9, in respect of the Related Party Acquisition pursuant to Section 5.5(b) (Issuer Not Listed on Specified Markets) and Se...