Edmonton, Alberta – TheNewswire - February 8, 2022 – Yorkton Equity Group Inc. (“Yorkton” or the “Company”) (TSXV:YEG) is pleased to announce, subject to TSX Venture Exchange (the “Exchange”) and other regulatory approvals, that it intends to complete a non-brokered private placement (the “Offering”) of up to $5,000,000 in unsecured convertible debentures of the Company (the “Convertible Debentures”).

The Offering may be completed in multiple tranches and is subject to customary closing conditions, including conditional approval from the Exchange. In accordance with applicable securities laws, the Convertible Debentures issued under the Offering will be sold to investors pursuant to prospectus exemptions available under National Instrument 45-106, including exemptions for: accredited investor, offering memorandum, minimum amount investment, and family, friends and business associates. Potential investors are encouraged to contact the Company for further information in respect of the Offering.

Mr. Ben Lui, President and CEO of Yorkton commented that, “We are excited to continue our rapid pace of expanding our multi-family rental property portfolio in strategic markets in the Province of British Columbia.  In the past eight (8) months we have acquired six (6) properties in key markets with significant upside potential based on strong population in-migration and job growth which is consistent with our business model.  The funds from the Offering will enhance the Company’s capital reserve pool for its planned on-going accretive acquisitions of multi-family rental properties.”

Details of this Private Placement:

Each Convertible Debenture will have an issue price of $1,000 with an interest rate of seven percent (7%) per annum payable annually to the Convertible Debenture holders only in cash.

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 $0.60 per Common Share (the “Conversion”), after which such principal amount of the Convertible Debenture will be extinguished. 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 (“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 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 Notice.

The Convertible Debentures with any Common Shares issuable upon conversion or exercise thereof, as applicable, will be subject to a statutory hold period lasting four months and one day following the closing dates.

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 company committed to providing shareholders with growing assets through the accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our geographical focus is in secondary markets in British Columbia with diversified, growing economies, and strong population in-migration. Our business objectives are to achieve stable Net Operating Income (“NOI”) and growing Net Asset Value (“NAV”) in our multi-family rental property portfolio by deploying a risk averse business model to create the ultimate value proposition for our shareholders. Yorkton Equity Group Inc. is built on the solid foundations of the Yorkton Group of companies with strong financial capacity, and well over 30 years of real estate experience.

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 news 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.