MONTREAL, May 09, 2022 (GLOBE NEWSWIRE) -- (CSE: EMER) Emergia Inc. (the “Corporation” or “EMERGIA”) announces today that it has filed, its audited annual financial statements, management’s discussion and analysis and its Annual Report, and related certifications for the fiscal year ended December 31, 2021.
“Emergia has passed the crucial stages of its strategic restructuring plan implemented last year. Its thorough execution has resulted in a significant improvement in the Corporation’s balance sheet, particularly by its deleverage, and increase in the total assets value, as shown in the financial statements. These results thus prove the strength and soundness of our plan, which allowed to improve remarkably the financial situation of the Corporation compared to 2020” said Henri Petit, Chief Executive Officer of the Corporation.
The highlights for the year ended December 31, 2021 and the highlights for 2022 up to date are set out below. More detailed information are contained in the Annual Report, in the financial statements and in the related management discussion and analysis which are available on SEDAR at www.sedar.com.
Highlights for 2021
2021 has been the year of significant achievements of important milestones for Emergia, as we:
- Considerably strengthened our balance sheet, by:
- Reducing the short-term debt from $33.4 million to $14 million;
- Registering a net income of $32.7 million, mainly due to a change in use of one property, which is now valued at fair market value instead of at cost;
- Improving its results of operations by 34.5%, reducing its loss from $6.4 million in 2020 to $4.2 million in 2021;
- Increasing its total assets by 70.4% to $131.3 million;
- Increasing the equity to $69.3 million;
- Reducing the global debt ratio from 64.6% to 47.2%;
- Realized our first acquisition since 2019, with the strategic acquisition of the 100-acre land in Alliston, marking thereby our expansion in Ontario;
- Completed the disposition of certain assets to delever the balance sheet;
- Secured new capital via private placement offerings;
- Received strong confidence from creditors who decided to convert debts in equity, finding an advantage in becoming shareholders; and
- Began to better reflect the quality and fair market value of our portfolio.
Highlights for 2022
Emergia intends to capitalize on its previous years’ achievements and:
- Proceed to the acquisition of income producing properties in line with Emergia’s business model. It has already done so in acquiring a 30% interest in a 6-Plazas portfolio in Ontario in March 2022, adding approximately $4.1 million of recurring revenues for the Corporation;
- Further capitalize the Corporation. We have already succeeded in closing for $5.7 million in private placement in Q1-2022, comprised of $1.2 million in debt conversion and $4.5 million in cash;
- Launch development projects on lands it already owns, contributing to its organic growth. Projects are already in the process of being approved.
- Generate recurring profits.
“Management looks forward to building on last year’s achievements and continuing to further demonstrate its strong commitment to building value for our shareholders in the forthcoming quarters and years.” added Henri Petit, CEO of Emergia.
ABOUT EMERGIA INC.
EMERGIA operates mainly in Canada in the development, acquisition, and management of multi-purpose real estate, including retail, multi-residential, industrial, and office buildings as well as land for future development. The Corporation’s investment platform is based on an integrated, agile and efficient develop-to-own strategy that enables EMERGIA to benefit from development profits and the value-add while securing stable long-term returns.
For more information, please visit www.emergia.com and www.sedar.com. EMER.CN
Source: Emergia Inc.
For more Information, please contact:
Henri Petit
CEO
T: 1.888.520.1414 (Ext. 231)
E: hpetit@emergia.com
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as “about”, “approximately”, “may”, “believes”, “expects”, “will”, “intend”, “should”, “plan”, “predict”, “potential”, “project”, “anticipate”, “estimate”, “continue” or similar words or the negative thereof or other comparable terminology. Such forward-looking information includes, without limitation, statements pertaining to the expected acquisitions and expected completion of such acquisitions, the business strategy and plans, and objectives of or involving the Corporation. The forward-looking information is based on certain key expectations and assumptions made by the Corporation, including expectations and assumptions concerning satisfaction of all conditions of closing, the receipt of required approvals and the availability of capital resources. Although the Corporation believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the effect of the COVID-19 pandemic on the Corporation’s financial condition, the real estate industry, and society as a whole, the market for the common shares, volatility of market price for common shares and other risks generally attributable to the business of the Corporation. For additional information with respect to risks and uncertainties, refer to the annual MD&A of the Corporation for the year ended December 31, 2021 and to the other periodic filings that the Corporation has made and may make in the future with the securities commissions or similar regulatory authorities in Canada, all of which are available under the Corporation’s SEDAR profile at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.
