Business
Announces Proposed Sale of Subsidiary
CALGARY, AB / ACCESSWIRE / September 18, 2023 / Appulse Corporation (" Appulse " or the " Corpor...
About this update from Appulse Corporation
[{"type":"text","content":"Announces Proposed Sale of SubsidiaryCALGARY, AB / ACCESSWIRE / September 18, 2023 / Appulse Corporation (\"Appulse\" or the \"Corporation\") (TSX-V:APL) announces today that it has entered into an arm's length definitive agreement (the \"Agreement\") to sell all of the issued and outstanding shares of its wholly owned subsidiary, Centrifuges Unlimited Inc. (\"CUI\"), to GEA Canada Inc. (\"GEA\"). CUI specializes in the sales, servicing and refurbishing of centrifuge equipment, serving both domestic and international markets, and offers full service industrial machining. GEA intends to operate CUI as a separate unit in order to better serve the North American market.The base purchase price is $10 million Canadian, subject to customary working capital and net debt adjustments, payable in cash. Appulse intends to apply a portion of the net proceeds to debt reduction, and will retain the remainder of the proceeds pending a thorough review of its future cash requirements and potential investment opportunities, all with a view of maximizing shareholder value.Unanimous Approval of the BoardThe transaction has been approved unanimously by Appulse's board of directors, which has determined that the transaction is in the best interests of Appulse and its shareholders and unanimously recommends that shareholders vote in favour of approving the transaction at the special meeting of shareholders, which will be held October 26, 2023 (the \"Meeting\")Shareholder Approval and Other ConditionsThe transaction must be approved by shareholders holding at least 66⅔% of shares voted in person or by proxy at the Meeting. Appulse's major shareholders, who collectively control approximately 67% of the outstanding common shares of Appulse, have each entered into a voting support agreement pursuant to which they have agreed irrevocably to vote all common shares in favour of the transaction at the Meeting. The transaction is also subject to other customary closing conditions.Information on the transaction and the Meeting will be disclosed in more detail in Appulse's management information circular (the \"Information Circular\") that is anticipated to be mailed at the beginning of October to shareholders as of the record date of September 25, 2023. It is anticipated that the transaction will be completed on November 1, 2023.Copies of the Agreement a...