CALGARY, April 16, 2020 /CNW/ - Mainstreet Equity Corp.
("Mainstreet" or the "Corporation") (TSX:MEQ) announces that filing
of the Company's interim financial statements for the six month
period ended March 31, 2020 ("Q2
Financial Statements") and associated management's discussion and
analysis ("Q2 MD&A", and collectively with the Q2 Financial
Statements, the "Q2 Filings") will be postponed due to delays
caused by the COVID-19 pandemic.
Although the Q2 Filings would ordinarily have been filed on or
before May 15, 2020, pursuant to ASC
Blanket Order 51-517 - Temporary Exemption from Certain
Corporate Finance Requirements (the "Blanket Order"),
the Company has up to an additional 45 days from the deadline
otherwise applicable under Alberta
securities laws to file the Q2 Filings, provided that it complies
with certain requirements set out in the Blanket Order.
Accordingly, Mainstreet is relying on the relief contained in the
Blanket Statements for its Q2 Financial Statements required by
section 4.4 of National Instrument 51-102 and its Q2 MD&A
required by subsection 5.1(2) of National Instrument 51-102.
Mainstreet estimates that the Q2 Filings will be filed no later
than June 23, 2020.
During the extension period, until Mainstreet has filed and
announced the required Q2 Filings, management and other insiders of
the Company will be subject to an insider trading black-out policy
that reflects the principles in Section 9 of National Policy 11-207
- Failure-to-File Cease Trade Orders and Revocations in Multiple
Jurisdictions.
Except as set out below, there have been no material business
developments since the date of the Company's interim financial
statements for the three months ended December 31, 2019, which were filed on
February 11, 2020.
Since December 31, 2019, the
outbreak of the novel strain of coronavirus, specifically
identified as "COVID-19", has resulted in governments worldwide
enacting emergency measures to combat the spread of the virus.
These measures, which include the implementation of travel bans,
self-imposed quarantine periods and social distancing, have caused
material disruption to business globally resulting in an economic
slowdown. Global equity markets have experienced significant
volatility and weakness. Governments and central banks have reacted
with significant monetary and fiscal interventions designed to
stabilize economic conditions. The duration and impact of the
COVID-19 outbreak is unknown at this time, as is the efficacy of
the government and central bank interventions. 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 in future periods. Management has taken and
will continue to take all prudent and directed steps to ensure
security, health, and business continuity for the Company. The
safety and health of each of our stakeholders is our current
priority, allowing for ongoing support for business activity,
subject to local authority directives.
Based on information currently available to Mainstreet as of
April 15, 2020, it appears that net
rent collections for April may be down slightly to 94% when
compared to the previous month's 96%, however, the decrease is not
material in nature to the Company. Mainstreet remains
cautious regarding its net rent collection rate for payments due in
May, and maintains a sizeable liquidity level of approximately
$170 million, including roughly
$10 million cash on hand, providing
plenty of room to address inherent uncertainty surrounding
disruption from the COVID-19 pandemic.
About Mainstreet
Mainstreet is a Calgary-based,
growth-oriented real estate corporation focused on the acquisition,
redevelopment, repositioning, and asset and property management of
mid-market apartment buildings. The Corporation currently owns and
operates residential rental units, including apartments and
townhouses, in the B.C. Lower Mainland, Airdrie, Calgary, Edmonton, Lethbridge, Saskatoon and Regina. Mainstreet's common shares are listed
on the Toronto Stock Exchange under the symbol "MEQ". There are
currently 9,368,630 common shares outstanding.
Forward-Looking Information
Certain statements
contained herein constitute "forward-looking statements" as such
term is used in applicable Canadian securities laws. These
statements relate to analysis and other information based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. In particular,
statements regarding the proposed timing of the filing of the Q2
Filings and the effects of the COVID-19 pandemic on the economy,
public markets and Mainstreet's business and other factors and
events described in this document should be viewed as
forward-looking statements to the extent that they involve
estimates thereof. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions of future events or
performance (often, but not always, using such words or phrases as
"expects" or "does not expect", "is expected", "anticipates" or
"does not anticipate", "plans", "estimates" or "intends", or
stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved) are not
statements of historical fact and should be viewed as
forward-looking statements.
Such forward-looking statements are not guarantees of future
events or performance and by their nature involve known and unknown
risks, uncertainties and other factors, including those risks
described in this Annual Information Form under the heading "Risk
Factors", that may cause the actual results, performance or
achievements of the Corporation to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks and other factors
include, among others, the effects of the COVID-19 pandemic on the
economy, the public markets and Mainstreet's business and on the
ability of the Company to prepare and approve the Q2 filings in a
timely manner, and other such business risks as discussed herein.
Material factors or assumptions that were applied in drawing a
conclusion or making an estimate set out in the forward-looking
statements include, among others, the ability of the Company to
prepare the Q1 Filings and have them approved by the board in a
timely manner. Although the Corporation has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, other factors may cause actions, events
or results to be different than anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate as actual results and future events could vary or differ
materially from those anticipated in such forward-looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements contained herein. Forward-looking
statements are based on Management's beliefs, estimates and
opinions on the date the statements are made, and the Corporation
undertakes no obligation to update forward-looking statements if
these beliefs, estimates and opinions should change except as
required by applicable securities laws or as otherwise described
therein.
SOURCE Mainstreet Equity Corporation