Parkit Enterprise Inc. (“Parkit” or the “Company”) (TSXV: PKT; OTCQX: PKTEF) is pleased to announce that it has purchased the operating assets of Smart Parking Solutions Canada Inc.(“Smartpark”) and employed its principals, Steve Strauss and AviMinkowitz, all effective July 1, 2018.
Smartpark is engaged in the parking management business and this strategic acquisition both expands Parkit’s footprint and provides additional expertise to source and acquire parking assets.
The purchase includes 5 parking management agreements in the Greater Toronto Area, as well as 10 permit management agreements with municipal and institutional clients in the United States including the City of Aspen CO, Arlington County VA and the Durham NH Police Department.
Parkit paid cash for the Smartpark assets in an amount that was not material to Parkit. Further, the Company will retain the employment of Steve Strauss and AviMinkowitz. While continuing to serve their existing clients, Steve Strauss and AviMinkowitz will focus on working with Parkit’s Board and management to source and acquire new parking related opportunities. “I am pleased to announce this acquisition and the addition of Avi and Steve to our management team, as they bring energy and entrepreneurial experience that we intend to use in our efforts to accelerate our growth”, said Bryan Wallner, CEO of Parkit.
“We believe this transaction is beneficial to our existing clients, and we are excited to join Parkit and look forward to focusing on growing the business going forward”, said Steve Strauss, on behalf of the sellers.
Additionally, the Company has recently filed its interim financial statements and management discussion and analysis for the quarter ended April 30, 2018 (“Q2 2018”) on SEDAR (www.sedar.com). The financial highlights for the period include:
• Revenue of $185,972, comprised of fee income, profit from joint ventures and profit from associate;
• Net income of $154,785, or $0.00 per share, inclusive of a foreign exchange gain of $153,513;
• Working capital of $2,380,470 (including cash of $1,958,094), and
• Net asset value increased slightly to $17,277,791, equivalent to $0.53 per share.
For a fuller explanation of the Company’s Q2 2018 results, please refer to the Company’s interim filings on SEDAR or the Company’s website.