Edmonton, Alberta – TheNewswire – August 30, 2021 – Yorkton Equity Group Inc. (“YEG” or the “Company”) (TSX.V: YEG), today announces its financial results for the three and six months ended June 30, 2021 and provides a corporate update.
“The financial statements reflect the significant growth in our asset base pursuant to our growth strategy. and we are pleased with the resulting positive impact to our balance sheet.” said Ben Lui, CEO of Yorkton. “The financial results for the three and six months ended June 30, 2021, reflect acquisition costs which will support the future growth of the Company and we are optimistic that with the pace of vaccinations across the country, that operations will return to pre-COVID 19 levels in due course.”
An overview of the financial results for the reporting period includes:
- Increase in Cash of $937,785, mainly related to the closing of the private placement in the quarter.
- Closed non-brokered private placement financing for gross proceeds of $2,825,000 or 11,300,000 shares representing an over-subscription by more than 40% on the originally announced private placement.
- Increase in assets related to the acquisition of 1205946 Alberta Ltd. (“Riviera Gardens”) of $8,264,942 and the investment in the Yorkton 108 LP Units of $4,850,034.
- Increase in prepaid expenses of $986,397 relating to deposits for additional purchases.
- Net rental revenue was $89,214 for the three months and $181,915 for the six months ended June 30, 2021, representing decreases of $79,278 for the three months and $113,055 for the six months from the comparative periods ending June 30, 2020.
- The company recorded a net loss of $150,313 for the three months and $266,956 for the six months ending June 30, 2021, related to increased vacancy rates which reduced revenues due to COVID-19, significant renovations, and upgrades to the recently acquired 62-unit Riviera Gardens apartment condominiums in Edmonton, AB, which will well position it for future revenue growth, and public company administrative costs.
The above highlights should be read in conjunction with the unaudited condensed consolidated interim financial statements and management discussion and analysis of results for YEG for the three and six months ended June 30, 2021, which were filed on SEDAR on August 30, 2021.
- Recently completed an additional non-broker private placement in the amount of $369,400 or 1,231,333 shares; funds raised will be utilized for future property acquisitions and general working capital.
- Completed the acquisition of the 19-unit luxury townhouse complex in Kelowna, B.C.
About Yorkton Equity Group Inc.
Yorkton Equity Group Inc. is a fully integrated, growth-oriented real estate investment company committed to providing shareholders with growing assets, and stable income through the accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential.
Our geographical focus is in primary and secondary markets across Canada with diversified, growing economies, and strong population in-migration, with a primary focus in British Columbia. Our business objectives are to achieve stable Net Operating Income (NOI) and growing Net Asset Value (NAV) in our multi-family rental property portfolio by deploying a risk averse business model to create the ultimate value proposition for our shareholders. Yorkton Equity Group Inc. is built on the solid foundations of the Yorkton Group of companies with strong financial capacity, and well over 30 years of real estate experience.
Further information about the Yorkton Equity Group Inc. is available on the Company’s website at www.yorktonequitygroup.com and the SEDAR website at www.sedar.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.
ON BEHALF OF THE BOARD OF DIRECTORS
Yorkton Equity Group Inc.
“Ben Lui” (signed)
Ben Lui, CEO
For further information on Yorkton, please contact:
YEG Corporate Office: (780) 409-8228
Yorkton – Investor Relations: (780) 907-5263
This press release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of Yorkton. Forward-looking information is based on certain key expectations and assumptions made by the management of Yorkton. Although Yorkton believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Yorkton can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Yorkton disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events, or results or otherwise, other than as required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.