TORONTO, March 30, 2022 /CNW/ - Standard Mercantile
Acquisition Corp. (TSX: SMA) (the "Company") today released its
financial results for the three months and year ended December 31, 2021. The audited financial
statements and annual MD&A of the Company can be found at
www.sedar.com or www.standardmercantileacquisition.com.
Financial Highlights & Business Update
For the three months and year ended December 31, 2021, income from operations
decreased by $236 thousand and
$981 thousand compared to the same
periods in 2020. The decrease was primarily the result of a
recovery on the incentive fee of $452
and $712 thousand in the same periods
in 2020 in addition to the new share-based compensation expense in
2021 of $40 and $236 thousand as compared to the same periods in
2020. Additionally, there was a fair value adjustment on
investments in mortgages in the year ended December 31, 2021. The Company recorded a fair
value gain adjustment of $325
thousand resulting in a fair value adjustment of
$340 thousand to the Company's
investment in mortgages.
During the three months and year ended December 31, 2021,
no mortgages were funded or fully repaid, although the Company did
receive a substantial repayment on one of its remaining mortgages
for which there was a fair value adjustment of $340 thousand. The Company's investment in
existing mortgages decreased by $3.1 million, which was
primarily the result of capitalized interest and a principal
repayment of $3.9 million on one of the two remaining
mortgages. Basic earnings per share
was $0.061 and $0.083 for the three months and
year ended December 31, 2021 respectively, compared
to $0.61 and $0.55 in the same periods in 2020.
Diluted earnings per share
was $0.060 and $0.080 for the three months and
year ended December 31, 2021 respectively, compared
to $0.61 and $0.55 in the same periods in
2020.
About the Company
The Company holds a portfolio of two mortgages in Canada. At the 2021 annual and special meeting
of the Company, the Company sought and received shareholder
approval to change its name to "Standard Mercantile Acquisition
Corp.", among other amendments to the Articles. 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 Company's
board of directors has experience in sourcing, evaluating and
executing transactions of this nature.
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.
SOURCE Standard Mercantile Acquisition Corp.