TORONTO, May 16, 2022
/CNW/ - Standard Mercantile Acquisition Corp. (TSX: SMA) (the
"Company") today released its financial results for the quarter
ended March 31, 2022. The
financial statements and MD&A can be found at www.sedar.com or
www.standardmercantileacquisition.com.
Financial Highlights &
Business Update
During the quarter ended March 31,
2020, the COVID-19 outbreak was declared a pandemic by the
World Health Organization. Since that time, the situation has
continued to be dynamic and the duration and magnitude of the
impact on the economy and our business are not fully known at this
time. These impacts could include further decreases in the fair
value of our mortgage investments or potential future decreases in
revenue or profitability of our ongoing operations. It is not
possible to reliably estimate the length and severity of these
developments and the impact on the financial results and condition
of the Company as it relates to its ability to complete the orderly
wind-up plan of the Company, as amended by amended by shareholders
of the Company at the Company's annual and special meeting of
shareholders held on May 6, 2021 (the
"2021 Meeting").
Income from operations for the three months ended March 31, 2022 was higher than same quarter last
year due to lower revenue of $69
thousand compared to same period last year, as a result of
reduced mortgage portfolio as the mortgage monetization strategy
continues, offset by lower expenses related to share-based
compensation expense of $55 thousand
and lower general and administrative expenses of $29 thousand compared to same period last
year.
Basic income per share from the three months ended March 31, 2022 was $0.01 compared to $0.01 in the same period in 2021.
As at March 31, 2022, the Company
had two mortgages outstanding. Of the two mortgages remaining, the
more significant one is set to mature in December 2022. During the second quarter of 2020,
the borrower requested a three month deferral of mortgage payments,
due to the inability of tenants to pay rent as a result of the
COVID-19 economic and health crisis. The deferral was granted.
Regular payments resumed during the third quarter of 2020, and the
Company made certain amendments to this mortgage in December 2020, including extending the term of
this mortgage through December 2022
in consideration of certain lump-sum repayments which commenced in
December 2020. As of March 31, 2022, the Company did not make any fair
market value adjustments based on the management's assessment of
the fair market value of its investment in both mortgages.
Regular Monthly & Special
Distributions
There were no regular distributions made for the three months
ended March 31, 2022 (March 31, 2021 - nil).
There were no special distributions made for the three months
ended March 31, 2022 (March 31, 2021 - $3,510,819).
The Board anticipates from time to time making further special
distributions as the two remaining mortgages in the portfolio
mature or are sold, or if the Board otherwise determines that it is
appropriate to do so based on cash balances, subject to reasonable
expected operating expenditures and repayment of the senior loan
participant on one of the remaining mortgages.
Forward Looking
Statements
Statements in this press release contain forward-looking
information. Such forward-looking information may be identified by
words such as "anticipates", "plans", "proposes", "estimates",
"intends", "expects", "believes", "may" and "will". The
forward-looking statements are founded on the basis of expectations
and assumptions made by the Company. Details of the risk factors
relating to the Company and its business are discussed under the
heading "Business Risks and Uncertainties" in the Company's annual
Management's Discussion & Analysis for the year ended
December 31, 2021 and under the
heading "Risk Factors" in the Company's Annual Information Form
dated March 30, 2022, copies of which
are available on the Company's SEDAR profile at www.sedar.com. Most
of these factors are outside the control of the Company. Investors
are cautioned not to put undue reliance on forward-looking
information. These statements speak only as of the date of this
press release. Except as otherwise required by applicable
securities statutes or regulation, the Company expressly disclaims
any intent or obligation to update publicly forward-looking
information, whether as a result of new information, future events
or otherwise.
About the Company
The Company holds a portfolio of mortgages in Canada. At the 2021 Meeting, the Company
sought and received shareholder approval to change its name to
"Standard Mercantile Acquisition Corp.", among other amendments to
the articles of the Company. The Company is focused on monetizing
its remaining mortgage assets and is considering options to enable
its shareholders to participate in the potential future value of
the Company through transactions that could capitalize on the
Company's public listing. The Board has experience in sourcing,
evaluating and executing transactions of this nature.
SOURCE Standard Mercantile Acquisition Corp.