Company enters second half of 2016 in position to expand portfolio of commercial properties in Europe
SHIJIAZHUANG, China-- Prime Acquisition Corp. (“Prime” or the “Company”) (OTCQB: Common Stock: “PACQF”, Units: “PAQUF”, Warrants: “PAQWF”) today provided an operational update on the six months ended June 30, 2016.
First Half 2016 Business Milestones
- Renegotiated banking/leasing arrangements, which resulted in improved cash flow from operations
- Maintained an above 95% occupancy rate at its portfolio of 10 properties in Milan, Italy, and the surrounding areas
- Received a €200,000 settlement from Auchan S.p.A. (“Auchan”), settling the last outstanding property-related litigation (Auchan is the Italian subsidiary of French international supermarket giant Groupe Auchan SA). Prime had accrued a provision of €131,240 for this lawsuit in its 2015 financial statement and in the first quarter of 2016. As a result of the settlement, this reserve will be released, and the Company will recognize the net asset improvement in its 2016 financial statement.
First Half 2016 Administrative Milestones
- Timely filed annual report on Form 20-F for the year ended December 31, 2015, with the U.S. Securities and Exchange Commission (https://www.sec.gov/)
- Filed registration statement on Form F-1 in July 2016, registering (among other things) the 3,813,979 shares underlying the warrants issued in Prime’s initial public offering pursuant to the prospectus dated March 24, 2011, and outstanding warrants issued pursuant to a dividend subsequent to the Company’s business combination, each for the purchase of one share
- Both the Form 20-F and Form F-1 can be directly accessed at the SEC Filings section of Prime’s IR page (http://ir.primeacq.com/all-sec-filings).
Mr. William Yu, Chief Executive Officer and Director of Prime, stated, “In the first half of 2016, we continued to make progress on the Company’s reorganization. Prime’s management team took on the arduous task of working through a number of challenges at the corporate level because we believe in the opportunity presented by the commercial real estate industry in Europe. We were able to renegotiate favorable financing terms with banks and leasing companies, which provided for both increased stability and flexibility within our existing portfolio. We continue working to reduce the Company’s overall liabilities while maintaining efficient operations, with a goal of scaling our business and growing shareholder value. The current market environment in Southern Europe offers an opportunity to acquire performing properties at compelling yields and at values substantially below their replacement cost, presenting us with the potential to achieve attractive returns for our shareholders. We believe we have a competitive advantage over other potential acquirers as we are not burdened by a legacy portfolio of underperforming assets or assets that may have significant debt obligations priced in a less favorable environment.”
Mr. Yu concluded, “In addition to our business initiatives, we focused on securities compliance and transparency, including completing our annual audit for 2015 and our recently filed registration statement on Form F-1. We are grateful for the continued support of our shareholders and continue to explore potential profitable and accretive acquisitions that will set the Company on a solid foundation toward long-term growth.”
About Prime Acquisition Corp.
Prime Acquisition Corp. is a Cayman Islands company that owns and operates office, commercial and industrial properties in Italy. Prime is focused on building a portfolio of high yield-producing assets.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Prime Acquisition Corp. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Prime’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:
- Continued compliance with government regulations;
- Changing legislation or regulatory environments;
- Requirements or changes affecting the businesses in which Prime is engaged;
- Industry trends, including factors affecting supply and demand;
- Labor and personnel relations;
- Credit risks affecting the combined business’ revenue and profitability;
- Changes in the Italian real estate industry;
- Changing interpretations of generally accepted accounting principles;
- General economic conditions; and
- Other relevant risks detailed in Prime’s filings with the Securities and Exchange Commission.
The information set forth herein should be read in light of such risks. Prime does not assume any obligation to update the information contained in this press release.
Prime Acquisition Corp.
+39 02 89773668
Source: Prime Acquisition Corp.