+1-888-520-1414 info@Emergia.com

EMERGIA INC. ANNOUNCES FILING OF ITS ANNUAL FINANCIAL STATEMENTS AND MD&A

Montreal, Quebec, May 21, 2021 ‐ (CSE: EMER) Emergia Inc. (the “Corporation” or “EMERGIA”) announces today that it has filed, at the end of the day yesterday, its audited annual financial statements, management’s discussion and analysis and related certifications for the fiscal year ended December 31, 2020. The Corporation expects that the failing‐to‐file cease trade order issued on May 10, 2020 will soon be revoked by its principal regulator, the British Columbia Securities Commission. We are proud to affirm that the Corporation has emerged and is Emerging Stronger from its restructuring journey. The Corporation has now shown and proven its capacity to pass through a “thunderstorm” as the one it went through from 2018 to now. We are now in a position, and we are ready, to demonstrate to our shareholders what Be Different means for Emergia. Its profile and business model, based on the diversification of its assets classes and operation segments, integrating development, optimization and long‐term holding, Emergia distinguishes itself in the real estate investment industry by offering a different way to invest in real estate.” said Henri Petit, Chief Executive Officer of the Corporation. The highlights for the year ended December 31, 2020 and the highlights for 2021 up to date are set out below. More detailed information are contained in the financial statements and related management discussion and analysis are available on SEDAR at www.sedar.com.

Highlights for 2020

  • Change of name for “Emergia Inc.” and ticker symbol for “EMER” reflecting the new dynamic within the Corporation and revealing the strengths and long‐term vision of the Corporation.
  • Adoption and execution of a plan of action to reach the profitability and the asset allocation targeted by the Corporation by 2021, including:
    • Disposal of Assets Held for Sale (Hospitality assets);
    • Disposal of some other assets to reduce the short‐term debt;
    • Completion of a Private Placement in equity exceeding $7M composed mostly of conversion of debt by existing lenders and creditors in equity of the Corporation;
    • Signature of a binding agreement to purchase a land of approximately 100 acres in Alliston, Ontario, having a value of $15.8 million.
  • Reduction of its total short‐term liabilities by $29.29M as at December 31, 2020.
  • Stable maintenance of its Effective Gross Revenues (EGR).
  • Increase of its Net Operating Income (NOI) by 6.1% from $1,153,369 in 2019 to $1,223,738 in 2020.
  • Entered into a 50‐50 joint venture to own and develop its 185, Dorval Avenue, Dorval (Investment Property), a 6‐Storey office building including an excess land of 45,000 sq.ft. for development. Transfer of the 117, Lepine Avenue, Gatineau (Optimizing Property), a 2‐storey retail and office building, in the same joint venture.

Highlights for 2021

The restructuring process has been pursued in 2021 as the Corporation succeeded in:

  • Reducing its short‐term debt by an additional $5.04 million in the first quarter;
  • Completion, on May 3, 2021, of the acquisition of approximately 100 acres development land in Alliston, Ontario valued at $15.8M.
  • In the second quarter, the Corporation has entered into agreements to acquire an 85% of beneficial interests in a portfolio of income producing properties comprised of 6 retail plazas located in Ontario. The total consideration for the acquisition of the 85% beneficial interest is approximately $121.3 million, of which approximately $89.3 million is payable by the assumption of debt and approximately $32 million is payable in a combination of cash and shares of the Corporation. The portfolio includes stabilized properties generating recurrent cash flows totaling approximately 550,000 sq.ft. of gross leasable area and excess land to develop an additional 200,000 sq.ft. of GLA, part of which is currently in development. More than 50% of the revenues are generated by investment grade tenants, the rest being financially solid national branded tenants. The Corporation is in advanced discussions for the acquisition of the remaining 15% of the beneficial interest in the portfolio. Subject to customary conditions, the transaction is expected to close in the third quarter of 2021.

“We are now ready to execute the Corporation’s long‐term business plan, including the launching of existing development projects to create organic growth, the creation of joint ventures in specific projects if needed, and plan other strategic acquisitions in line with our business model” added Henri Petit, CEO of Emergia.

ABOUT EMERGIA INC.

EMERGIA operates mainly in Canada in the development, acquisition and management of multipurpose 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, 2020 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.

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