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VANCOUVER, BC, Feb. 18, 2022 /CNW/ - Kadestone Capital Corp. ("Kadestone" or the "Company") (TSXV: KDSX) (OTCQB: KDCCF), a vertically integrated property company today announced its financial results for the year ended December 31, 2021.
Highlights for the year:
- Cash and cash equivalents of $5,017,287 at December 31, 2021
- Investment of $7,680,000 in Chilliwack and $7,800,000 in Squamish partnerships
- Sale of Kyle Rd investment property for $9,863,000 net of costs
- Cash financing of $4,750,000 through issuance of a convertible note
"We are very pleased to have completed our first full fiscal year of operations in 2021 and having established the foundation for our vertically integrated real estate company. We are excited about identifying opportunities and securing additional investments." said Brent Billey, the Company's CEO.
The Company recorded a net loss for the year ended December 31, 2021 of $2,885,432 or $0.06 per share compared to a net loss of $2,535,809 or $0.08 per share for the same period in the prior year. The loss was primarily due to expenses incurred for the ongoing operations of the Company which included salaries and wages of $592,824, share-based compensation of $1,025,985, interest expense of $589,281 and professional fees of $362,238 that were partially offset by a fair value adjustment on investment properties of $128,673. Net cash used in operating activities for the year ended December 31, 2021 decreased to $1,383,038 compared to $1,733,574 for the year ended December 31, 2020.
The above audited financial information, including comparative information, is expressed in Canadian dollars and has been prepared in accordance with International Financial Reporting Standards, using the accounting policies and methods of application as described in notes 2 and 3 of the Company's audited consolidated financial statements for the years ended December 31, 2021 and 2020.
Sale of Kyle Road Property
The closing of the sale of Building 1 - 2648 Kyle Road, Kelowna, BC: Strata Lots: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20 (the "Kyle Road Property") to Union Allied Capital Corp. occurred on November 1, 2021 for a price of $10,100,000 less $237,000 in selling commissions and closing costs. Concurrently, the Company repaid the remaining balance of debt on the Kyle Road Property of $4,925,000 and accrued interest and fees of $1,836, for net proceeds to the Company of approximately $4,936,164.
Kadestone was established to pursue the investment in, acquisition, development and management of residential and commercial income producing properties and procurement and sale of building materials within major urban centres and high-growth, emerging markets in Canada. The Company operates five complimentary business lines spanning building materials procurement and supply, property development and construction, construction finance, asset ownership and property management. These synergistic business lines have solidified Kadestone's vision to become a market leading vertically integrated property company. Additional information can be found at www.kadestone.com.
ON BEHALF OF THE BOARD
(signed) "Brent Billey"
President, CEO and Director
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.
Cautionary Statement Regarding Forward- Looking Statements
Certain information in this press release, including, but not limited to, statements that the capital from the sale of the Kyle Road property will allow the Company to pay down debt and the Company's vision to become a leading vertically integrated property company, may constitute forward looking information (collectively, forward-looking statements), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Because of various risks and uncertainties, including those referenced below, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. As a result, you should not rely on such forward-looking statements. Additional information identifying assumptions, risks and uncertainties relating to Kadestone is contained in Kadestone's filings with the Canadian securities regulators available at www.sedar.com. These risks include those described in the "Risk Factors" section of the Company's final prospectus dated September 2, 2020 and in the Management's Discussion and Analysis for the years ended December 31, 2021 and 2020. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Kadestone Capital Corp.
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