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
