VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sep 5, 2014) – Parkit Enterprise Inc. (“Parkit”) (TSX VENTURE:PKT)(OTCQB:PKTEF) announces that, further to its news release of April 7, 2014 it has received US$5,000,000 in non-dilutive debt financing (the “Loan”) for its next asset acquisition.
On April 7, 2014 Parkit announced that it has contracted to purchase a US off-airport parking facility and that a leading US financial institution was underwriting a US$12,950,000 non-recourse debt financing. The US$5,000,000 Loan will be used toward the purchase price of this asset.
The Loan has the following terms: (i) simple interest of 9% per annum; (ii) matures in 12 months from the date of advance (subject to extension); (iii) it can be repaid at any time prior to maturity; (iv) a $100,000 commitment fee; (v) a general security interest applies against Parkit’s assets as security for the Loan; and (vi) 1,000,000 bonus warrants will be issued, each warrant entitling the lender to purchase one common share for a period of 12 months at $0.65 per share. In the event the Loan term is extended, (i) a 5% renewal fee is payable, (ii) the interest rate increases to 13% per annum, and (iii) Parkit will deliver to the Lender an additional 500,00 bonus warrants, exercisable for a period of 12 months expiring on the second anniversary of the date the Loan was originally advanced, at a price equal to Parkit’s Market Price per share as at the date of such extension.
This transaction is subject to Exchange approval.
ON BEHALF OF THE BOARD
Rick Baxter, CEO
Parkit Enterprise Inc. is a listed private equity real estate company that acquires and aggregates income-producing real estate in the parking sector.
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 news release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.