Press Releases

Prime Provides First Half 2017 Financial Update

SHIJIAZHUANG, China--(BUSINESS WIRE)-- Prime Acquisition Corp. (“Prime” or the “Company”) (OTCQB: Common Stock: “PACQF”, Units: “PAQUF”, Warrants: “PAQWF”), an owner and operator of office, commercial and industrial properties in Italy, today provided a financial update on the six months ended June 30, 2017.

Financial Highlights

  • Cash generated from operations was $1,369,232 for the six months ended June 30, 2017, an approximately 800% improvement when compared to $156,498 for the six months ended June 30, 2016.
  • The Company reported a loss of $412,563 for the six months ended June 30, 2017, an 80% improvement when compared to the loss of $1.8 million for the six months ended June 30, 2016.
  • The Company’s cash and cash equivalents were $202,795 at June 30, 2017, an approximately 300% improvement when compared to $55,393 at December 31, 2016.

Management Commentary

Mr. William Yu, Chief Executive Officer and Director of Prime, stated, “During the first half of 2017, Prime continued to strengthen its financial position following the Company’s internal reorganization and successful financing negotiations in early 2016. We once again increased cash generated from operations and improved our overall cash position when compared to the prior-year period. As we’ve streamlined and strengthened our operations and management, we’ve substantially improved cash flow and are well positioned to benefit from the Eurozone expansion whose impact is just beginning to be felt in Italy. We continue to explore opportunities to expand our portfolio of assets and remain committed to growing shareholder value over the long term.”

First Half 2017 Operating Summary

Prime’s portfolio of properties includes office, logistics, commercial and industrial real estate assets located in Milan, Italy, and the surrounding areas. The Company maintained an average occupancy rate of above 95% for its 10 properties during the six months ended June 30, 2017.

Real Estate Portfolio Summary
    Property Name/Location   Type  

Approx. Gross
Leasable Area

(in sq. meters)


Purchase Price
on 9/30/2013
($ in millions)



1   Corso Europa 22, Milano   Office   560   $8.57   Italian firms   10
2 Milanofiori, Building A5 Office 865 $3.13

Various int’l and
Italian firms

3 Milanofiori, Building Q7 Office 586 $1.27

Various int’l and
Italian firms

4 Milanofiori, Building N Office 1,750 $4.48

Various int’l and
Italian firms

5 Viale Lucania, Buccinasco Office, Industrial 16,230 $22.27


6 Via Buozzi 22, Buccinasco Office 545 $1.85

Various int’l and
Italian firms

7 Via Lazio 95, Buccinasco Office, Warehouse 4,320 $5.01 Italian firms 10
8 Via Emilia, Buccinasco Commercial 200 $0.35

Italian commercial

9 Via Mulino, Buccinasco Commercial 360 $1.37 Merkur 8
10 Milanofiori, Building Q5 Office 400 $1.26 Italian firms 10
25,816 $49.56

First Half 2017 Financial Summary

Below is a summary of Prime’s unaudited financial results for the six months ended June 30, 2017.


Income Statement Highlights


Six months ended
June 30, 2017


Six months ended
June 30, 2016

Rental income     1,317,096     1,307,324
Total revenues   $ 1,560,609   $ 1,718,681
Total operating expenses     (1,187,692)     (1,259,901)
Operating profit     372,917     458,779
Loss before tax     (290,172)     (1,844,422)
Loss for the period   $ (412,563)   $ (1,829,391)

Rental income improved slightly compared to the first half of 2016, remaining around $1.3 million for the six months ended June 30, 2017. Total revenues decreased by $158,072, which is attributable to a decrease in Other Revenues to $243,513 for the first half of 2017 from $411,357 in the prior-year period due to revenue received in 2016 in connection with the settlement of a legal claim with an unrelated third party.

Total operating expenses decreased 5.7% to $1.2 million for the six months ended June 30, 2017, from $1.3 million for the first six months of 2016, primarily due to reduced stock option expenses and professional fees.

For the six months ended June 30, 2017, the Company reported a loss of $412,563, which compares to a loss of $1.8 million in first half of 2016, largely due to a significant improvement in finance costs, which were $837,874 in the first half of 2017, compared to $1.9 million in the prior-year period. The decrease in finance costs was primarily related to certain adjustments to the fair value adjustment on promissory notes to shareholders. These adjustments are non-cash in nature and resulted from a derivative component embedded in the promissory notes.

Balance Sheet Highlights

As of June 30, 2017, Prime had total non-current assets of $38.9 million; current trade and other receivables, net of allowance for bad debts, of $677,033, with non-current other receivables of $170,405; and cash and cash equivalents of $202,795, compared to $35.9 million, $756,940, $143,137, and $55,393, as of December 31, 2016, respectively.

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.

Forward-looking Statements

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.