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Edmonton, Alberta – TheNewswire – October 2, 2023 – Yorkton Equity Group Inc. (TSXV:YEG) (“Yorkton” or the “Company”) is pleased to announce that it has issued an unsecured grid promissory note to borrow up to a maximum amount of $1,700,000 (the “Promissory Note”) from Lui Holdings Corporation (the “Lender”). The Promissory Note shall mature twenty-four (24) months from the date of issuance (the “Maturity Date”). The principal amount outstanding of the Promissory Note shall bear interest at a rate of five percent (5%) per annum for the first thirty (30) days and ten percent (10%) per annum from the 31st day until the Maturity Date or upon the early repayment of the Promissory Note in full, whichever comes first. The Company shall have the right at any time to pay all or any portion of the balance owing on the Promissory Note without notice, bonus or penalty.
Yorkton intends to use the proceeds from the Promissory Note for the acquisition of The Fuse, a 125-unit multi-family residential complex in Edmonton, Alberta, as announced on October 2, 2023, and general working capital.
Mr. Ben Lui, the President and CEO, director, and majority shareholder of the Company, also controls the Lender. Accordingly, the Promissory Note is considered a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and the policies of the TSX Venture Exchange (the “TSXV”) and Mr. Lui has abstained from voting on the Promissory Note in his capacity as a director of the Company.
The Company is exempt from the formal valuation requirement under MI 61-101 as its common shares are listed for trading on the TSXV. The Company is also exempt from the minority approval requirement under MI 61-101 as the Promissory Note has been provided on reasonable commercial terms that are not less advantageous to the Company than if it were obtained from an arm’s length party. Further, the Promissory Note is not convertible into or repayable in securities of the Company.
About Yorkton
Yorkton Equity Group Inc. is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our current geographical focus is in Alberta and British Columbia with diversified and growing economies, and strong population in-migration. Our business objectives are to achieve growing Net Operating Income (“NOI”) as well as the asset values in our multi-family rental property portfolio in strategic markets across Western Canada.
The management team at Yorkton Equity Group Inc. has well over 30 years of prior real estate experience in acquiring and managing rental assets.
Further information about Yorkton is available on the Company’s website at www.yorktonequitygroup.com and the SEDAR+ website at www.sedarplus.ca.
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:
Ben Lui, CEO – Corporate Office: (780) 409-8228
Yorkton Equity Group Inc. – Shareholder Communications: (780) 907-5263
Email: [email protected]
Forward-looking information
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 press 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 requirement.
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