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VANCOUVER, BC, Dec. 3, 2020 /CNW/ - Kadestone Capital Corp. (TSXV: KDSX) (the "Company" or "Kadestone") wishes to announce that it has entered into a non-binding letter of intent (the "Letter of Intent") with Taisheng International Investment Services Inc. ("Taisheng") regarding the further development of the Qinghuangdao Economic and Technological Development Zone ("QETDZ") Industrial Park in Terrace, BC further strengthening the Company's building procurement business in Canada.

Kadestone Capital Corp. Logo (CNW Group/Kadestone Capital Corp.)

HIGHLIGHTS

  • The Company will pursue the leasing or purchasing of approximately 200 acres of the QETDZ Terrace Industrial Park from Taisheng
  • This forms a key milestone towards establishing Kadestone as a market leading vertically integrated property company with a robust global network of partners, suppliers and investors
  • Upon successful completion of the transaction, this project in Terrace will be used as a key staging, storage, and assembly site to expand the Company's building materials procurement business
  • Terrace's proximity to the port of Prince Rupert, a highly cost-effective international shipping port, represents a good opportunity to fully utilize Kadestone's global relationships
  • The relationship with Taisheng will ideally expand to leverage the Company's expertise and services to assist in the development of further opportunities at the QETDZ Industrial Park
  • Both parties will promptly begin legal negotiations with the goal of reaching one or more definitive agreements on or prior to June 1, 2021

"We are excited to enter into this LOI with Taisheng to further pursue this opportunity," said Brent Billey, Kadestone Capital Corp's Chief Executive Officer. "This land in Terrace would enable us to expand our building materials supply division. It would also give us the ability to enhance delivery scheduling consistency as well as final assembly and quality control measures," concluded Brent.

The Qinhuangdao Economic and Technological Development Zone (QETDZ) Industrial Park project is a 1,200-acre industrial land development site in Terrace BC, owned by Taisheng. The long-term goal is to develop a manufacturing-oriented industrial park, which will be the first of its kind in Western Canada.

Under the terms of the Letter of Intent, completion of the transaction is subject to a number of conditions including, but not limited to, negotiation of the transaction, the completion of due diligence on the QEDTZ property, negotiation and execution of the definitive agreement and satisfaction of the closing conditions. There can be no assurance that the transaction will be completed as proposed or at all.

About Kadestone Capital Corp.

Kadestone was established to pursue the investment in, development, acquisition, and management of residential and commercial income producing properties 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

Cautionary Statement Regarding Forward Looking- Statements

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. Certain statements in this news release contain forward-looking statements within the meaning of the applicable Canadian securities laws that may not be based on historical fact.  When used herein, the words "expect", "anticipate", "estimate", "may", "will", "should", "intend," "believe", and similar expressions, are intended to identify forward-looking statements. Forward-looking statements may involve, but are not limited to, the ability of the Company to further develop QETDZ Industrial Park , the Company's ability to lease of purchase approximately 200 acres of the QETDZ Terrace Industrial Park from Taisheng, the Company's ability to establish a market leading vertically integrated property company with a robust global network of partners, suppliers and investors, the Company's ability to use the project as a key staging, storage, and assembly site to expand the Company's building materials procurement business, Terrace representing a good opportunity to fully utilize Kadestone's global relationships, the expansion of the relationship with Taisheng, the ability to complete negotiations for a definitive agreement. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including  without limitation, the parties being unable to agree to the final terms of the transaction, the risk that the conditions to completion of the transaction will not be satisfied, an event, change or other circumstance that could give rise to the termination of the transaction will occur, the impact of the COVID-19 pandemic, the Company's ability to retain key personnel; the Company's ability to execute on expansion plans; the Company's ability to execute on additional acquisition opportunities, the Company's ability to continue investing in infrastructure to support growth, the ability to obtain and maintain existing financing on acceptable terms and other factors set forth in the 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 three and nine months ended September 30, 2020 (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. 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.  This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

SOURCE Kadestone Capital Corp.

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