Business
Decisive Dividend Corporation Completes Acquisition of Northside Industries and Finalizes New Credit Facility
(via TheNewswire) August 16, 2019 - TheNewswire - Kelowna, British Co...
About this update from Decisive Dividend Corp.
[{"type":"text","content":"Decisive Dividend Corporation Completes Acquisition of Northside Industries and Finalizes New Credit Facility(via TheNewswire)\n \n \n\n\n \n \nAugust 16, 2019 - TheNewswire - Kelowna, British Columbia - Decisive Dividend Corporation (TSXV:DE) (\"Decisive\" or the \"Company\"), a diversified acquisition-oriented company, is pleased to announce that it has completed its previously announced acquisition (the \"Northside Acquisition\") of 0854851 B.C. Ltd., which operates as Northside Industries (\"Northside\"). The vendors of Northside are arm's length to Decisive. \n\n \n \nAt closing, Decisive paid aggregate consideration to Northside vendors of $12,237,541, representing the base purchase price of $12,000,000, plus upward adjustments of: $200,041 for estimated closing working capital in excess of the target working capital; and $37,500 for certain capital expenditures agreed to by the parties. \n\n \n \nIn satisfaction of the closing payment, Decisive made a cash payment to the Northside vendors of $11,037,541 from the proceeds of its new credit facility and issued to the Northside vendors 316,539 common shares of Decisive (representing $1,200,000 divided by $3.791, being the volume weighted average trading price of the common shares of Decisive for the ten trading day period ended August 15, 2019). Accordingly, there is no requirement for the company to issue any additional equity to complete this transaction.\n\n \n \nThe purchase price is subject to customary post-closing adjustments based upon confirmation of closing working capital plus up to an additional $4,000,000 contingent on Northside meeting certain earnings targets over the next three years.\n\n \n \nThe Northside Acquisition is anticipated to be financially accretive for Decisive as it is expected to result in significant increases in sales, gross profit, profit before taxes, and Adjusted EBITDA, which is a non-GAAP financial measure used by Decisive. Further particulars regarding this non-GAAP financial measure, as well as certain (unaudited) historical financial information concerning Northside and the combined pro forma historical financial results of Northside, Decisive, and its current operating subsidiaries, are set forth in Decisive's material change report dated August 8, 2019, a copy of which is available on Decisive's profile on the System for Electronic ...