- 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 on August 21, 2020, a premium of 52% to the 30-day VWAP on the TSX-V for the period ending August 21, 2020 and a premium of 93%to the 90-day VWAP on the TSX-V for the period ending August 21, 2020
- Transaction has a total equity value of $47.8 million
TORONTO, Aug. 24, 2020 (GLOBE NEWSWIRE) -- Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS) and Simply Green Home Services Inc. (“Simply Green”), part of the Simply Group of Companies, announced today that they have entered into a definitive support agreement (the “Agreement”), pursuant to which Simply Green has agreed, subject to the terms of the Agreement, to acquire all of Dealnet’s outstanding common shares (the “Common Shares”) for $0.16 in cash per Common Share, pursuant to a board-supported take-over bid (the “Offer”).
The Offer represents a premium of 33% to the closing price of the Common Shares on the TSX Venture Exchange (the “TSX-V”) on August 21, 2020 (the last trading day prior to the announcement of the Offer), a premium of 52% to the 30-day volume weighted average price (“VWAP”) on the TSX-V for the period ending August 21, 2020 and a premium of 93% to the 90-day VWAP on the TSX-V for the period ending August 21, 2020.
“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 Harold Bridge, Chairman, Dealnet. “Accordingly, the board of directors of the Company (the “Board”) determined that it would be in the best interests of the Company and its shareholders to undertake a process to identify if a value-maximizing transaction was available. After running a thorough process, the Board believes that the cash offer from Simply Green represents full and fair value for our shareholders.”