ParcelPal Logistics Inc C.PKG

ParcelPal will acquire 95% of the outstanding shares

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ParcelPal Logistics expands its footprint in the US via purchase of a U.S. Delivery Company

Jul. 14, 2021 8:30 AM ETParcelPal Logistics Inc. (PTNYF)By: Meghavi Singh, SA News Editor

 

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• ParcelPal Logistics (OTCQB:PTNYF) inks a “letter of intent” to acquire a United States delivery service company for an expected sum of $3.1M, payable in 60% cash and in 40% restricted shares of ParcelPal common stock.
• Under the terms of the transaction, ParcelPal will acquire 95% of the outstanding shares of Acquiree’s capital stock, and Acquiree will enter into an exclusive services agreement with its principal business source.
• The cash portion of the purchase price will be funded from either (or a combination of) existing cash, the use of our equity line of credit facility and/or a non-brokered private placement financing.
• The parties intend to complete the proposed transaction between July 30 and August 10, 2021.
• Currently, there is no assurance that the proposed transaction will be completed on the terms proposed in the Letter of Intent or within the timelines.
• The Acquiree will become a subsidiary of ParcelPal Logistics, and will continue to operate under its existing name and intends to onboard Acquiree’s senior executive within ParcelPal for further integration of the business.