Yorkton Equity Group Inc. Announces Acquisition of Property Management Company from Related Parties
Edmonton, Alberta--(Newsfile Corp. - July 2, 2026) - Yorkton Equity Group Inc. (TSXV: YEG) ("Yorkton" or the "Company") is pleased to announce it has entered into a share purchase agreement dated July 1, 2026, to acquire 100% of the issued and outstanding Class "A" common shares (the "YM Shares") of Lui International Group Inc., operating as Yorkton Management, ("YM") from Mr. Ben Lui, the CEO, director and majority shareholder of the Company, and a close family member (collectively, the "Vendors"). The Company expects to issue to the Vendors approximately 4,666,666 common shares of the Company ("Common Shares") at a deemed price of $0.15 per Common Share, representing expected total consideration of approximately $700,000, subject to post-closing adjustments to be determined in accordance with the share purchase agreement and to be settled on or before December 31, 2026 (the "Transaction"). Following the Transaction, it is expected that Mr. Ben Lui will hold approximately 72.37% of the Company's outstanding Common Shares on a non-diluted basis. The closing price of the Company's Common Shares on June 30, 2026 was $0.15 per Common Share. No finder's fees were paid in connection with the Transaction.
YM currently provides property management services primarily to the Company's investment properties located in Edmonton, Alberta. The purpose of the Transaction is to vertically integrate these services within the Company's operations, providing more direct control over property management and allowing the Company to retain any profits generated by these services. The Transaction is also expected to support more efficient property management as the Company expands its multi-family rental property portfolio.
Closing of the Transaction is subject to the satisfaction of customary closing conditions, including receipt of all applicable regulatory approvals and acceptance by the TSX Venture Exchange.
Bill Smith, Chairman of the Board of Directors of Yorkton stated, "We believe this acquisition is an important step in Yorkton's strategy to fully integrate key operational functions and strengthen control over our multi-family portfolio. By bringing property management in-house, the Company expects to increase its net profit, enhance operational efficiency and support the growth of its multi-family investment portfolio."
Related Party Transaction
The Company and Mr. Ben Lui are related parties as Mr. Ben Lui is the CEO, director and majority shareholder of Yorkton. As a result, this transaction is considered a "related party transaction" pursuant to the policies of the TSX Venture Exchange and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Board of Directors, excluding Mr. Ben Lui, has reviewed and approved the Transaction. The Transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. In particular, the Company has determined that the exemption set out in paragraph (b) in section 5.5 of MI 61-101 is applicable since the Company is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange. In addition, regarding the minority shareholder approval exemption, the independent directors have determined that the exemption set out in paragraph (1)(a) in section 5.7 of MI 61-101 is applicable in that the fair market value of the YM Shares and the fair market value of the consideration does not exceed 25% of the Company's market capitalization.
About Yorkton
Yorkton Equity Group Inc. is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our current geographical focus is in Alberta and British Columbia with diversified and growing economies, and strong population in-migration. Our business objectives are to achieve growing Net Operating Income ("NOI") and asset values in our multi-family rental property portfolio in strategic markets across Western Canada.
The management team at Yorkton Equity Group Inc. has well over 35 years of prior real estate experience in acquiring and managing rental assets.
Further information about Yorkton is available on the Company's website at www.yorktonequitygroup.com and the SEDAR+ website at www.sedarplus.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information
This press release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of Yorkton. Forward-looking information is based on certain key expectations and assumptions made by the management of Yorkton. Although Yorkton 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 because Yorkton can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Yorkton disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirement.
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Source: Yorkton Equity Group Inc.
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