KADESTONE CAPITAL CORP. REPORTS Q4 AND FULL YEAR 2023 FINANCIAL RESULTS
/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.
- 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.
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.
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.
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.
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.
David Negus, CFO, Kadestone Capital Corp., [email protected], 604 671-8142
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