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Bullboard - Stock Discussion Forum Nanalysis Scientific Corp. V.NSCI

Alternate Symbol(s):  NSCIF

Nanalysis develops and manufactures compact MRI and NMR devices for clinical, laboratory, and industrial markets. These portable devices require no liquid helium or any other cryogens. The company’s devices are used in diagnostics and chemical analysis across a range of industries (medical, pharma, biotech, mining, oil and gas, and more) as well as numerous government and university research... see more

TSXV:NSCI - Post Discussion

Nanalysis Scientific Corp. > Merges with K'(Prime) Technologies Inc.
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Post by Betteryear2 on Nov 14, 2021 3:32pm

Merges with K'(Prime) Technologies Inc.

CALGARY, ABNov. 10, 2021 /CNW/ - Nanalysis Scientific Corp. ('the Company", TSXV:NSCI, OTCQX:NSCIF, FRA:1N1) is pleased to announce that it has entered into a binding agreement to acquire 100% of K'(Prime) Technologies Inc. (KPrime), a North American sales and service company, with a particular focus on scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications. The deal is expected to close before Dec 31, 2021.

KPrime has been representing leading equipment manufacturers for over 20 years and has become proficient in driving sales volume by understanding customer needs. The company is a sales and service focused organization that has profitability in its DNA. Over the past four fiscal years KPrime's unaudited revenue has been between C$8 million and C$10 million with positive EBIDTA of roughly $1.0 to $1.5 million per year. The company was founded by Mr. Kham Lin, who began his career selling scientific instrument for Hewlett Packard which eventually became Agilent Technologies. KPrime was incorporated in 1997. Mr. Lin took over the operation in 2001 when he identified an opportunity to represent several equipment manufacturers on an exclusive basis. The company has been profitable every year since inception.  

Sean Krakiwsky, founder and CEO of Nanalysis said, "Joining forces with such an experienced sales and service organization is a unique expansion opportunity for Nanalysis. Our vision is to provide full sales and service coverage in every major market in the world, most importantly in the United States and Canada. We need a living, breathing, thriving, and resilient sales organization that evolves globally as we grow. KPrime constitutes this living sales organism that is focused on driving growth and can ingrain the ethos of profitability into our entire company. I have known Kham for over 10 years, and am confident that his trademarks of honesty, perseverance, integrity, as well as his tenacious focus on capital equipment sales and service, represents a highly complementary infusion, which will result in continued revenue growth and creation of shareholder value."

"We have already begun the integration planning, and we are excited to start working with KPrime in earnest. The teams at Nanalysis and KPrime recognize the complementary nature and talents of each team. A key aspect of the integration is the merging of the sales organizations, with a particular emphasis on the senior sales leadership at KPrime. Since inception, Nanalysis has been heavily weighted towards high-end scientists and engineers, and it is now time to bring the company into conventional operation ratios as it pertains to the mix of employee backgrounds and talents: KPrime rounds out the talent pool at Nanalysis," continued Mr. Krakiwsky. 

Chair of the Board of Directors, Mr. Martin Burian, states, "Sean and Kham have been talking about this deal for a long time, and the Board of Nanalysis is pleased that it has come to fruition. As part of this deal, we will be welcoming Kham to the Nanalysis Board, and I speak for all Directors when I say that we are looking forward to working with him as a Director."

Mr. Kham Lin added, "We are eager to be combining forces with Nanalysis. This deal is great news for our employees, our existing customers, partners and it will also allow us to expand our instrumentation sales and service business to include NMR. We are chasing some very large contracts, and this deal optimizes our chances of landing new business opportunities. As a sales professional, I am particularly interested in becoming part of vertically integrated scientific instrumentation company, with world class R&D and manufacturing, as well as tremendous access to capital. We will expand sales in analytical and security markets, which will include the scaling of our equipment leasing business. Recuring service-oriented revenue is also very important to our business model, which is another example of how we are complementary to Nanalysis."

"Sean and I share a vision of building a company that provides a broad range of analytical and imaging detection solutions to the real-world problems of today and tomorrow. By combining our organizations, we take a big step in that direction,"  concluded Mr. Lin.

About the Acquisition

The base consideration paid for KPrime is $3 million in cash and the issuance of 2.76 million Nanalysis shares, which are subject to a two-year lock-up period. The former shareholders of KPrime may also receive earn-out consideration of up to $1 million over two years, based on future revenue objectives.

The closing of this transaction is subject to several customary closing conditions, such as TSX approval. Final closing of this deal is expected before December 31, 2021, in Calgary, Canada, but may be extended to January 31, 2022, if time requires.

 
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