- Dealnet’s Board unanimously supports the Offer, which will provide shareholders with the opportunity to crystallise the value of their holdings in cash
- Offer of
$0.16 per Common Share represents a premium of 33% to the closing price of the Common Shares on the TSX-V onAugust 21, 2020 , a premium of 52% to the 30-day VWAP on the TSX-V for the period endingAugust 21, 2020 and a premium of 93%to the 90-day VWAP on the TSX-V for the period endingAugust 21, 2020 - Transaction has a total equity value of
$47.8 million
The Offer represents a premium of 33% to the closing price of the Common Shares on the
“As our peers began to take notice of the dramatic turnaround of our operations and the positive momentum our business has built over the last few years, we began to receive unsolicited, informal expressions of interest,” said
“Simply Green has invested strategically to become a leader in the home comfort and home energy solutions sector, and this deal represents the next step in our continued growth. We are pleased this transaction will be adding over
The Board engaged
After careful consideration of the terms of the Offer and having received legal and financial advice, including the fairness opinion from OMP, the Board believes the terms of the Offer to be fair and reasonable and in the best interests of the Company and its shareholders and accordingly, unanimously recommends that shareholders tender their Common Shares to the Offer.
The Agreement provides for, among other things, a customary Board support condition, a non-solicitation covenant in respect of any competing offers from third parties, a right for Simply Green to match any alternative transaction proposal made by another party and a provision which provides for the payment of a fee by Dealnet to Simply Green in limited circumstances, including if Dealnet enters into an agreement with respect to a superior proposal from a third party.
All of Dealnet’s directors and executive officers have entered into lock-up agreements with Simply Green, pursuant to which they have agreed to, among other things, tender all of their Common Shares to the Offer.
Full details regarding the terms and conditions of the Offer, as well as the process for tendering Common Shares will be set out in the circulars of each of the Company and Simply Green and related documentation, which will be mailed to the Company’s shareholders and filed under Dealnet’s profile on SEDAR in due course. Having entered into the Agreement, the Company intends on postponing its annual and special meeting of shareholders currently scheduled for
The Offer is not subject to any financing condition. As is customary, Simply Green has confirmed that it has sufficient resources available to fund the consideration for all of the Common Shares acquired pursuant to the Offer.
Shareholders who have additional questions about the Offer are encouraged to contact
Advisors
Dealnet has engaged
Simply Green has engaged
Information Agent and Depositary
For additional information, Dealnet shareholders should contact Kingsdale, toll free in
About
Dealnet is the parent company of subsidiaries operating in two market segments, consumer finance and call centre. The Company operates in the consumer finance segment in
EcoHome is a specialty finance company serving the
One Contact offers customer support services to both EcoHome and third-party institutions across
For additional information please visit www.sedar.com.
About
With more than
Neither the
Forward-looking Statements
This news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks, including the effects of Covid-19, and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
Contact Information
Chief Executive Officer
(905) 695-8557 ext. 1145
bhoulden@dealnetcapital.com
Toll free: 1-866-851-3214
Local: 416-867-2272
contactus@kingsdaleadvisors.com
Source:
2020 GlobeNewswire, Inc., source