Business
Bri-Chem Corp. announces letter of intent to acquire Millennium Technologies Ltd.
Bri-Chem Corp. announces letter of intent to acquire Millennium Technologies Ltd..
About this update from Bri-chem Corp.
[{"type":"text","content":"\n\n\n\nTSX Venture Exchange\n\n\nSymbol "BRY"\n\n\nEDMONTON, June 4 /CNW/ - Bri-Chem Corp. (the "Bri-Chem") (TSX Venture\nExchange: BRY) a leading Canadian wholesale distributor of drilling fluids,\nproducts and services, is pleased to announce that it has entered into a\nletter of intent (the "Letter of Intent") to acquire Millennium Technologies\nLtd. ("Millennium"), a Western Canadian-based full-service chemical products\nwholesaler. Under the terms of the Letter of Intent, Bri-Chem has agreed to\nmake an offer to purchase (the "Proposed Acquisition") all of the issued and\noutstanding shares of the parent holding company and related party loans of\nMillennium in consideration for an aggregate purchase price of $4,500,000.\n\n\nThe total purchase price of $4,500,000 consists of $3,000,000 cash\npayable as to $2,700,000 on closing, $300,000 fourteen months from closing and\n$1,500,000 by way of the issuance of 600,000 common shares at a price of\n$2.50 per share. The Proposed Acquisition also incorporates 100,000 share\npurchase warrants issued to the vendors. Each share purchase warrant entitles\nthe holder to purchase one common share of Bri-Chem at a price of $2.50 per\ncommon share for a period of three years from the close of the Proposed\nAcquisition. Bri-Chem management believes the acquisition of Millennium will\nbe immediately synergistic and will provide new customers, broader territorial\ncoverage specifically in Saskatchewan, and inventory warehouse consolidation.\n\n\nMillennium is a private corporation duly incorporated and validly\nexisting under the laws of the Province of Alberta having its head office in\nCalgary, Alberta. Unaudited figures from Millennium's operations for the\nfiscal year ended September 30, 2006 were total assets of $8,246,083, net\nworking capital of $1,826,028, sales of $11,434,833 and pretax earnings of\n$651,536. Millennium currently supplies over 200 drilling fluid, environmental\nand production chemical products to a customer base primarily located in the\nWestern Canada. Since 1999, Millennium has developed a diversified product mix\nand built-up a strong outside sales staff who provide customers with the\nfinest possible service and technical advice.\n\n\nAbout Bri-Chem\n\n\nBri-Chem operates out of its head office located in Acheso...