TORONTO, Aug. 12,
2022 /CNW/ - Standard Mercantile Acquisition Corp.
(TSX: SMA) (the "Company") today released its financial results for
the quarter ended June 30, 2022. The
financial statements and MD&A for the three and six months
ended June 30, 2022 can be found at
www.sedar.com or www.standardmercantileacquisition.com.
Financial Highlights &
Business Update
As at June 30, 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 June 30, 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.
Income from operations for the three and six months ended
June 30, 2022 was lower than the same
periods last year by $22 thousand and
$7 thousand, respectively, due to a
lower average mortgage portfolio, lower administrative fees in 2022
and lower share-compensation expenses in 2022 compared to same
periods last year.
Basic and diluted income per share from the three and six months
ended June 30, 2022 was $0.004 as compared to $0.01 and $0.01 in
the same period in 2021.
At June 30, 2022, cash on hand was
$0.69 million, a decrease of
$0.25 million compared to the amount
held at December 31, 2021. The
decrease is primarily the result of timing in working capital.
During the quarter ended March 31,
2020, the COVID-19 outbreak (including its variants) 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").
Regular Monthly & Special
Distributions
There were no regular distributions made for the three months
ended June 30, 2022 (June 30, 2021 - nil).
There were no special distributions made for the six months
ended June 30, 2022 (June 30, 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 and the Company's management and board of
directors have experience in sourcing, evaluating and executing
transactions of this nature.
SOURCE Standard Mercantile Acquisition Corp.