/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, April 26,
2024 /CNW/ - Kadestone Capital Corp.
("Kadestone" or the "Company") (TSXV: KDSX) (OTCB:
KDCCF), a vertically integrated property company today announced
its financial results for the year ended
December 31, 2023.
Highlights for the year:
- Cash and cash equivalents of $4,331,129 at December 31,
2023
- Investments of $12,664,220 in
Chilliwack and $10,201,905 in Squamish partnerships
- Amendment and restatement of existing $10,000,000 term loan by way of a new
$10,973,540 term loan
"We are very pleased with our 2023 fiscal year of operations and
are excited about identifying opportunities and securing additional
investments in 2024." said Brent
Billey, the Company's CEO.
Financial Results
The Company recorded a net loss for the year ended December 31, 2023, of $1,704,148 or $0.04
per share compared to a net loss of $4,557,948 or $0.10
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 $1,228,666, share-based compensation of
$759,620, interest expense of
$1,019,157 and professional fees of
$717,727 that were partially offset
by income from associates of $2,306,723 and interest revenue of $301,068. Net cash used in operating activities
for the year ended December 31, 2023,
increased to $2,375,293 compared to
$2,348,890 for the year ended
December 31, 2022.
The above audited financial information, including comparative
information, is expressed in Canadian dollars and has been prepared
in accordance with IFRS Accounting 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, 2023, and
2022.
Amended and Restated Term Loan
Agreement
Further to the Company's news release dated April 25, 2024, the Company amended and restated
its existing $10,000,000 unsecured,
non-revolving term loan previously provided by a certain lender to
the Company by way of an amended and restated term loan agreement
(the "Restated Loan Agreement"), which becomes effective as
of May 1, 2024, (the "Loan").
The increased $10,973,540 aggregate
amount of the Loan (which includes accrued interest under the
previous loan) is evidenced by a promissory note and bears interest
at a rate equal to 9% per annum from May 1,
2024 until April 30, 2025; a
rate equal to 11% per annum from May 1,
2025 until April 30, 2026; a
rate equal to 13% per annum from May 1,
2026 until April 30, 2027 and
a rate equal to 15% from May 1, 2027
to April 30, 2028. The outstanding
principal amount of the Loan, together with unpaid and accrued
interest thereon, is payable in full at the maturity date of
May 1, 2028. Scheduled principal
payments of $250,000 are payable on
the last business day of each fiscal quarter. The Restated
Loan Agreement provides the lender with equity participation rights
and a right of first offer with respect to the financing of future
real estate development projects. The other terms of the original
loan agreement remain unchanged.
About Kadestone
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, the Company's ability to identify opportunities and
secure additional investments in 2024 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.sedarplus.ca. 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, 2023 and 2022. 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, except as required by applicable
law.
SOURCE Kadestone Capital Corp.
