VANCOUVER, Feb. 11, 2019 /CNW/ - Parkit Enterprise Inc. ("Parkit" or the "Company") (TSXV: PKT; OTCQX: PKTEF) is pleased to announce that it has received a payment of CAD $561,569 (USD $423,506) from OP Holdings JV, LLC (the "Joint Venture"). This payment resulted from the release of an environmental trust that was established for the sale of Expresso Airport Parking (the "Property"). The Property was sold in October 2018 and the Department of Toxic Substances Control (California, U.S.A) released the environmental trust after the purchaser of the Property established its own environmental trust for the Property. This payment will add cash of approximately CAD $0.016 per share to Parkit's treasury.
"We believe that this payment represents the first of many distributions that Parkit will receive from the Joint Venture. As set out in the Company's press release dated October 19, 2018, the Joint Venture reached its 15% internal rate of return ("IRR") target owed to the Managing Member of the Joint Venture. As a result, all future cash flows from sales and refinances within the Joint Venture will flow to Parking Acquisition Ventures, LLC ("PAVe"), an entity in which Parkit has an 82.83% interest until PAVe has received a 15% IRR. From that point, additional capital proceeds from asset sales and refinances will flow through the Joint Venture's waterfall with further benefit to Parkit," stated David Delaney, Parkit's Executive Chairman. "Our Joint Venture is making significant progress in realizing the value of its assets and we look forward to continuing this asset monetization. Parkit would like to thank our Joint Venture partners for their dedication and effort in continuing to realize the value in our collective assets."
For more information on the Joint Venture and the priority of future payments, please refer to the OP Holdings JV, LLC limited liability company agreement posted to the Company's SEDAR profile on April 23, 2018.
For further information on the Company please see the Company's financial statements and related management's discussion and analysis for the year ended October 31, 2017 and the nine month period ended July 31, 2018 available under the Company's profile on www.sedar.com.
Parkit Enterprise Inc. is engaged in the acquisition, optimization and asset management of income producing parking facilities across the United States and Canada. The Company's shares are listed on TSX-V (Symbol: PKT) and on the OTCQX (Symbol: PKTEF).
Neither 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.
Disclaimer for Forward-Looking Information
Certain statements contained in this news release constitute forward-looking information under applicable securities law. These statements relate to future events or future performance, including statements as to: the Company's belief regarding anticipated distributions from the Joint Venture. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as the operations of the Joint Venture and its ability to complete asset sales and refinancings. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
SOURCE Parkit Enterprise Inc.