Funny they don't mention the price they are paying. the PLAN Input Capital Corp. Enters Term Sheet to Acquire SRG Security Resource Group Inc.
REGINA, SK, Nov. 30, 2020 /CNW/ - Input Capital Corp. (TSXV: INP) (US: INPCF) ("Input" or the "Company") is pleased to announce that it has entered into a non-binding term sheet (the "Term Sheet") with SRG Security Resource Group Inc. ("SRG") outlining the principal terms and conditions on which Input would be prepared to purchase 100% of the common shares of SRG, a Canadian provider of cyber security and physical protective security services (the "Proposed Acquisition"). The Term Sheet has been accepted by SRG and a majority group of shareholders holding approximately 78% of the common shares of SRG. The Proposed Acquisition as contemplated by the Term Sheet remains subject to, among other conditions, the completion of due diligence to Input's satisfaction and the negotiation and execution of a definitive share purchase agreement, which is expected to contain customary covenants, representations, warranties, indemnities and closing conditions, including the approval of the TSX Venture Exchange.
Input will continue to operate its existing agriculture operations for the foreseeable future. The average remaining term of Input's streaming contracts with its many farm clients is 2-3 years. With canola prices nearing all-time highs, Input has an excellent opportunity to maximize the value of its assets as the Company repatriates capital from the agriculture sector over the remaining life of these contracts. This is expected to put Input in an excellent financial position to back SRG's anticipated growth strategy in the security sector.
"The SRG security platform represents a unique opportunity to acquire a 24-year-old, profitable, high-performing business that is extremely well-positioned for its next stage of growth," said Doug Emsley, Chairman & CEO of Input. "By marrying Input's very strong balance sheet to SRG's growth opportunities, we see an opportunity to create a thriving player in the cyber and physical security services business. SRG's founders have been in the security business since 1987. The entire SRG management team is expected to remain with the company."
There can be no assurance that the Proposed Acquisition will receive all required approvals, or be advanced on the terms indicated in the Term Sheet, or at all. Full details of the Proposed Acquisition will be made available once a definitive share purchase agreement has been executed.
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