Edmonton, AB - TheNewswire - January 18, 2023 - Yorkton Equity Group Inc. (“Yorkton” or the “Company”) (TSXV:YEG) announces the receipt of final Exchange acceptance for the closing of its private placement previously announced on October 21, 2022 (the “Private Placement”).  The Company will issue 258 unsecured convertible debentures of the Company (the “Convertible Debentures”) to the investors at an issue price of $1,000 per Convertible Debenture for aggregate gross proceeds of $258,000.

Details of this Private Placement:

Each Convertible Debenture will have an issue price of $1,000 with an interest rate of eight percent (8%) per annum, payable annually to the Convertible Debenture holders only in cash no later than thirty (30) days from the anniversary date of the closing date of the Offering to the maturity date.

Each Convertible Debenture will mature on the date that is five (5) years from the date of issuance of the Convertible Debenture (the “Term”). The principal amount of each Convertible Debenture may, at the option of the Convertible Debenture holder, be convertible, in whole or in part during the Term, into Common Shares at a conversion price of $0.30 per Common Share (the “Conversion”), after which such principal amount of the Convertible Debenture will be extinguished.

For a period of thirty (30) calendar days following the third (3rd) and fourth (4th) anniversary after the closing date, the Convertible Debenture holder has the right, but not the obligation, to retract the principal amount of the Convertible Debenture (“Retraction Rights”), not previously converted or redeemed, by providing notice to the Company (the “Retraction Notice”) so that the principal amount owing under the Convertible Debenture, and any accrued and unpaid interest thereon, will be payable in cash by the Company on the date that is one hundred and eighty (180) calendar days after receipt of the Retraction Notice by the Company.

The Company, after a period of thirty-six (36) months following the date of closing, will also have the right, but not  the obligation, to redeem the principal amount and any unpaid interest of the Convertible Debenture in cash, without penalty, at any time prior to the date of maturity by providing a thirty (30) calendar day notice period (the “Redemption Notice”) to the Convertible Debenture holder by way of a written notice or a press release duly disseminated. Within ten (10) business days after receipt of the Redemption Notice, the Convertible Debenture holder, at its sole discretion, may request for a Conversion (of the principal amount only exclusive of any interest component which is payable in cash only) from the Company by the issuance of Common Shares.  All rights to Conversion lapses ten (10) business days after receipt of the Redemption Notice.

The Convertible Debentures and any Common Shares issuable upon conversion will be subject to a statutory hold period lasting four months and one day following the closing date.

The Company intends to use the proceeds from the Offering for the continued acquisition of multi-family rental properties in strategic markets consistent with its secure and aggressive growth business model, and general working capital.

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 secondary markets 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”) as well as Net Asset Value (“NAV”) in our multi-family rental property portfolio in strategic markets across Canada.

The management team at Yorkton Equity Group Inc. has well over 30 years of 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.sedar.com.

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.

For further information on Yorkton, please contact:

Ben Lui, CEO - Corporate Office: (780) 409-8228

Yorkton Equity Group Inc. – Shareholder Communications: (780) 907-5263

Email: investors@yorktonequitygroup.com

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.