Business
Innovest Global Set to Add $30 Million in Annual Revenue with Pending Acquisition
Innovest Global Set to Add $30 Million in Annual Revenue with Pending Acquisition.
About this update from Innovest Global Inc
[{"type":"text","content":"\nCLEVELAND, Aug. 31, 2018 (GLOBE NEWSWIRE) -- Innovest Global Inc. (OTC Markets: IVST) (the “Company” or “Innovest”), has signed a letter of intent, and agreed to final structure for the acquisition of a $30 million revenue company in the Building Materials Industry. This will add to its current operations in commercial and industrial products and services, and its recent biotech acquisition.\n This transaction represents a substantial, over five-times increase in Innovest’s revenue, and marks entry into its third industry sector. “This is a transformational acquisition for Innovest,” said, Chief Executive Officer, Dan Martin. “Because of the revenue, but also because the leadership of the organization is world class, well respected in their industry, and has a vision and plan for growth that I believe is highly likely to succeed in our model once we hit the switch.” Mr. Martin noted that the company has a unique model, which at the current sales rate is slightly profitable, and features low fixed costs and a growth strategy that projects increasing profits with significant sales growth. The target’s leadership group views Innovest as the ideal platform from which to launch their growth plan. The Building Materials Industry outlook is very favorable overall, and is trending toward consolidation, both of which are attractive to Innovest. Discussions began in March 2018. In April, formal negotiations began. Innovest formally presented to the board of directors of the target company on June 11th, which approved and executed a proposed Letter of Intent at that meeting. Yesterday, after over two months of negotiating the structure of the transaction, Innovest learned that both parties have agreed on the long form documents and structure of the transaction. Because the transaction represents such a significant revenue boost to Innovest, both parties maintained confidentiality throughout the process until final terms and language were acceptable. Details of the transaction, once completed, will be disclosed in Innovest’s pending 2017 audit and forthcoming OTC Markets disclosures (as “Subsequent Events”). Both parties view the transaction as “very attractive”. Terms include a 100% acquisition of the target entity in exchange for the issuance of 5 ...