Business
General Assembly Pizza Announces Sale of Frozen Pizza Assets
Asset sale will improve balance sheet, reduce go forward investment and allow for financially via...
About this update from Canpr Technology Inc.
[{"type":"text","content":"General Assembly Pizza Announces Sale of Frozen Pizza AssetsAsset sale will improve balance sheet, reduce go forward investment and allow for financially viable refocusToronto, Ontario--(Newsfile Corp. - April 14, 2023) - General Assembly Holdings Limited (TSXV: GA) (\"General Assembly\" or the \"Company\") today announced that it has completed the sale of substantially all of its assets related to its production, sale and distribution of frozen pizza (the \"Frozen Pizza Business\"). The Company completed the sale of its Frozen Pizza Assets to Piano Piano Inc. (\"Piano Piano\"), a private Italian food restaurant and frozen pizza brand based in Toronto, pursuant to a definitive transaction agreement (the \"Agreement\") entered into on the date hereof between GA CPG Limited, a wholly owned subsidiary of the Company (the \"Vendor\"), and Pizapie Inc., a wholly owned subsidiary of Piano Piano (the \"Purchaser\"). The Purchaser and Piano Piano are each arm's length to the Company.Details of the TransactionThe assets forming part of the sale include substantially all of the equipment, contracts, inventory and intangible property solely related to the Frozen Pizza Business (the \"Frozen Pizza Assets\"). The Frozen Pizza Assets excludes certain assets including, but not limited to, accounts receivable accrued prior to the closing of the sale in respect of the Frozen Pizza Business (the \"Closing\") and assets used in connection with the Company's operation of its restaurant business (the \"Restaurant Business\"). As consideration for the acquisition of the Frozen Pizza Assets, the Purchaser has assumed senior indebtedness in the aggregate amount of $1.76 Million owing to certain arm's length creditors of the Company (the \"Assumed Debt\") and other liabilities of the Company in respect of its manufacturing facility lease, equipment financing commitments and certain other accounts payable, totaling, together with the Assumed Debt, approximately $2.98 Million. The Assumed Debt forms part of the $3,000,000 debt financing completed and announced by the Company in the fourth quarter of 2021.Certain employees of the Frozen Pizza Business have been offered new employment with Piano Piano and, effective as of the Closing, have ceased employment with the Company.2499754 Ontario Limited (\"249\"), another wholly-owned subsidiary of the Company, r...