TORONTO, June 2, 2016 /CNW/ - Park Lawn Company Limited (CSE:PRL) ("The Company") today announced its financial results for the three-month period ending March 31, 2016 ("Q1") showing earnings of $4.47 per share.
On January 6, 2016 the Company completed an agreement with Mattamy for the development of the Company's property at 57 Linelle Street, Toronto, Ontario. As a consequence, the statements of operations report a pre-income tax net gain from the sale to Mattamy of $5,806,496, for the three-month period ended March 31, 2016, and an after tax income for the quarter of $5,059,485 or $4.47 per share.
The parties entered into an agreement for the development of the Company's property at 57 Linelle Street, Toronto. Mattamy has acquired an 80% interest in this land for $8.2 million. 30% of the purchase price was paid upon closing with an additional 10% payable in 120 days. For the balance of 60%, the Company has taken a vendor take back a mortgage for up to three years. The Company has retained a 20% interest in the land and has entered into a co-ownership agreement with Mattamy. The co-owners' agreement contemplates the development of the land for low-rise residential development. The Company and Mattamy will divide profits from the development and sale of the land held for development with the Company receiving 20% and Mattamy 80%.
About Park Lawn
In addition to its continued involvement in the development of the 57 Linelle Street site, Park Lawn Company Limited holds a Promissory Note in the amount of $5,096,498 issued by Park Lawn Corporation, a vendor take back mortgage of $4,920,000, and owns the house and land located at 53 Linelle Street, Toronto, Ontario.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Park Lawn Company Limited
For further information: Frank Mills, President, or Larry Boland, Vice President and Treasurer, Park Lawn Company Limited, Tel: (647) 933-9079, Fax: (416) 512-6076