Dealnet’s investor presentation published on
The Share Price Does Not Represent the Value of the Company
Based on Dealnet’s public releases, analyst reports, reasonable assumptions and industry metrics, the Concerned Shareholders estimate that the undiscounted value of Dealnet is
- Residual Cash -
$0.25 ($72,000,000 ) - Tax Losses -
$0.05 ($24,600,000 - Analyst Report) - Call Centre Business -
$0.05 (Analyst Report) - EOT/Renewal of approximately 16,000 leases -
$0.17 ($3,000 / lease) - Renewal of approximately 23,000 loans -
$0.08 ($1,000 / loan) - Dealer Relationships/ Originations Engine -
$0.06 ($60mm/year X 4%Net Margin X 7 years) - Infrastructure, Staff and Technology -
$0.01 ($ millions invested)
Simply Green’s Offer is “Simply” Too Low
Simply Green is well capitalized and a force in the industry. The acquisition of Dealnet by Simply Green will likely be highly accretive to Simply Green given that Dealnet’s current operating costs could be significantly reduced as margins and EPS skyrocket when Dealnet is integrated into Simply Green. The Concerned Shareholders also question Simply Green’s motives, noting that an independent analyst recently commented that a partial take-up of the Offer provides the potential for “a go-public transaction for Simply Green.” If Dealnet becomes a public vehicle for a combined Simply Green billion dollar portfolio, shareholders could potentially expect a highly liquid stock valued at dollars not pennies.
We Believe Dealnet Insiders Will Pocket Millions
Dealnet has not yet filed its executive compensation disclosure for the year ended
Dealnet Blocks a Chance to Vote with Questionable Process
In conjunction with announcing the Offer, Dealnet also announced its intention to postpone its annual and special meeting of shareholders that is scheduled for
The Dealnet board’s desperate maneuver to delay their fate from a shareholder vote and attempt to tie the Company to a low offer is seemingly driven by self-serving behaviour on the part of the entrenched incumbents. Dealnet Chairman
Simply Green’s Offer does not reflect the full value of Dealnet. Accordingly, the Concerned Shareholders intend to reject and not tender any of their Dealnet shares to the Offer. “It may be appealing for some exhausted shareholders to recoup a fraction of their investment at a massive loss but we believe there is nothing to lose and everything to gain by rejecting the Offer,” concluded Dr.
Disclaimer
The information contained in this news release does not and is not meant to constitute a solicitation of a proxy within the meaning of applicable securities laws. Shareholders are not being asked at this time to execute a proxy in favour of the nominees of the Concerned Shareholders. In connection with Dealnet’s annual general and special meeting of shareholders, the Concerned Shareholders may file and mail a dissident information circular in due course in compliance with applicable securities laws.
Forward Looking Statement
This news release contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements and information, other than statements of historical fact, included herein are forward-looking statements, including, without limitation, statements regarding activities, events or developments that the Concerned Shareholders expect or anticipate may occur in the future. These forward-looking statements can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words and expressions or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur or, even if they do occur, will result in the performance, events or results expected. We caution readers not to place undue reliance on forward-looking statements contained herein, which are not a guarantee of performance, events or results and are subject to a number of risks, uncertainties and other factors that could cause actual performance, events or results to differ materially from those expressed or implied by such forward-looking statements.
Readers are cautioned that all forward-looking statements involve known and unknown risks and uncertainties, including those risks and uncertainties detailed in the continuous disclosure and other filings of Dealnet, copies of which are available on the System for Electronic Document Analysis at www.sedar.com. We urge you to carefully consider those risks and uncertainties. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. Unless expressly stated otherwise, the forward-looking statements included herein are made as of the date of this news release and the Concerned Shareholders disclaim any obligation to publicly update such forward-looking statements, except as required by applicable law.
Contact Information
Dr.
(647) 699-5066
ssmall@cpcorp.ca
Source: Concerned Shareholders of
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