Avante Logixx Announces Divestiture of Citywide Locksmiths Inc.
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TORONTO, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (TSXV: XX) (“Avante” or the “Company”) is pleased to announce that it has entered into a binding agreement with the minority shareholders of CityWide Locksmiths Inc. (“Citywide”) to sell Avante’s 70% interest in Citywide. The transaction is expected to close on or before September 30, 2020.
The majority position of Citywide was originally acquired by Avante on April 1, 2016 under previous management’s strategy of “Own the Home.” Since acquisition, Citywide has contributed to Avante’s top and bottom line, provided access to many tightly controlled product lines, and generated cross selling opportunities between divisions. During the fourth quarter of fiscal 2020, Citywide represented 7.3% of Avante’s consolidated revenue.
“We are pleased to announce the divestiture of our majority position of Citywide to members of the Shearer family and wish them great success as they regain control of their family business,” said Craig Campbell, CEO and Director of Avante. “We enjoyed being partners with the Shearer family and look forward to working with them in the future through referrals and mutual projects that benefit both companies. We chose to divest our interest in Citywide because it is no longer core to our strategy of building a one-stop shop security solutions provider for both residential and enterprise customers. By divesting Citywide, management will have greater focus on executing our stated strategy and the sale proceeds will provide additional capital for Avante’s general corporate purposes.”
The sale price for the Company’s 70% interest will be approximately $2.3 million, of which $1.8 million will be paid on closing, $450,000 represents an interest-bearing vendor take back note payable over five years and $91,500 has already been received.
No advisory fees are payable or are to be paid by the Company in connection with the transaction.
About Avante Logixx Inc.
Avante Logixx Inc. (TSXV: XX) is a Toronto headquartered provider of security solutions. We acquire, manage, and build industry-leading businesses that provide specialized, mission-critical solutions that address the needs of our customers. Our businesses continuously develop innovative solutions that enable our customers to achieve their objectives. With an experienced team and a proven track record of solid growth, we are taking steps to establish a broad portfolio of security businesses to provide our customers and shareholders with exceptional returns. Please visit our website at and consider joining our investor email list.
Avante Logixx Inc.
| Craig Campbell CEO (416) 923-6984 |
Forward-Looking Information
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Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, the company realizing on the anticipated value of completed acquisitions , the company maintaining its projected growth, the company’s ability to execute on its strategic vision, the ability of the company to identify revenue and cost synergies, general economic conditions or conditions in the financial markets and the risks identified in Avante’s Management Discussion & Analysis, Annual Information Form and other continuous disclosure. This list is not exhaustive of the factors that may affect any of Avante’s forward-looking information. In connection with the forward-looking statements contained in this and subsequent press releases, Avante has made certain assumptions about its business and the industry in which it operates, including that no significant events occur outside of Avante’s normal course of business, assumptions about trends in manpower and technology costs, assumptions made about the business of completed acquisitions, and assumptions about the company’s ability to leverage Avante’s and acquired company’s collective customer bases and networks. Although management believes that the assumptions inherent in the forward-looking statements are reasonable as of the date the statements are made, forward-looking statements are not guaranteeing future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty of the statements. Avante’s forward-looking information is based on the beliefs, expectations, and opinions of management on the date the statements are made, and Avante does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, readers should not place undue reliance on forward-looking information.
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