Edmonton, Alberta, April 20, 2021 – Yorkton Equity Group Inc. (“YEG” or the “Company”) (TSX.V:YEG) is pleased to report on the successful completion of the special meeting of the shareholders (the “Special Meeting”) held on Monday, April 19, 2021 as scheduled.
Mr. Bill Smith, the Company’s Chairman conducted the formal business of the Special Meeting at which the shareholders of YEG approved, by the affirmative vote in excess of 99.5% of the total votes cast at the Special Meeting, excluding votes cast by related parties, with respect to the following resolutions:
- (i) the acquisition of all of the issued and outstanding shares of 1205946 Alberta Ltd. from Lui Holdings Corporation (a related company) for an approximate aggregate amount of $4,200,000 by issuance of approximately 16,800,000 common shares in the capital of YEG at a deemed price of $0.25 per Common Share; and
- (ii) the acquisition of limited partnership units in Yorkton 108 Limited Partnership for an approximate aggregate amount of $3,695,841 from Lui Holdings Corporation by the issuance of approximately 14,783,364 common shares of the YEG at a deemed price of $0.25 per Common Share.
Further details of the two aforementioned acquisitions were included in the Company’s management information circular and voting material sent to the shareholders and filed on SEDAR on April 13, 2021.
The two acquisitions are each considered a “related party transaction” in accordance with the requirements of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and therefore required approval by a “majority of the minority” vote of Company’s shareholders. Eligible voting shares refer to the total outstanding Common Shares excluding Common Shares of the related party, which, for the purposes of the resolutions, was defined as common shares held by Ben Lui, a director and officer of the Corporation who owns, directly or indirectly 50,977,902 of the voting shares.
Mr. Bill Smith, the Chairman of YEG says, “Once the two acquisitions have been completed, the Net Asset Value (NAV) of the Company will increase by nearly $8,000,000, diversifying the asset portfolio to include residential rental and limited partnership units in purpose-built residential rental properties. The resulting portfolio is expected to enhance cash flow from operations while providing a solid foundation for growth going forward.”
The two acquisitions have been submitted to the TSX Venture Exchange and will close once final approval has been issued.
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 an initial 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. Please contact us at [email protected].
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.
For further information on Yorkton, please contact:
President and Chief Executive Officer
Tel: (780) 409-8228 (Ext. 222)
Email: [email protected]
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.