Business
Ecolomondo announces that it has entered into an agreement with respect to the acquisition of Gestion Transport Lyon Inc.
Ecolomondo announces that it has entered into an agreement with respect to the acquisition...
About this update from Ecolomondo Corporation
[{"type":"text","content":"\n\n\n\nEcolomondo announces that it has entered into an agreement with respect to the acquisition of Gestion Transport Lyon Inc.\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONTREAL, March 15, 2019\n\n\n\n/NOT FOR DISTRIBUTION TO U.S NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n MONTREAL, March 15, 2019 /CNW Telbec/ - Ecolomondo Corporation (TSXV: ECM) (the \"Company\" or \"Ecolomondo\") is pleased to announce that it has entered into a conditional purchase agreement with respect to the acquisition of Gestion Transport Lyon Inc. (\"Transport Lyon\") by a combination of share issuance and working capital contribution into Transport Lyon (the \"Transaction\"). \n\n \n \n\n \nThe closing of the contemplated Transaction, subject among other conditions to satisfactory legal and financial due diligence, is expected to take place by April 30, 2019. Once completed, Transport Lyon will become a wholly-owned subsidiary of Ecolomondo and should immediately contribute significant revenues to Ecolomondo. \nTransport Lyon is a large Montreal-based transport company that offers specialized transportation and is an authorized collector of used tires for the government agency Recyc-Quebec. Transport Lyon owns and operates a large fleet of vehicles, provides quality service and has an enviable reputation in the transport industry.\nVertical integration of Transport Lyon will bring to Ecolomondo a strong market presence and solidify its position in the scrap tire industry in Quebec. \nEcolomondo's growth strategy is to be a full service company, from collection, shredding to processing of scrap tire waste to recover resources to be re-used by industry.\nManagement believes that vertical integration of scrap tire transporters and recyclers by Ecolomondo will allow Thermal Decomposition Process (\"TDP\") turnkey plants to secure increased feedstocks, higher tipping fees and reduce costs by taking advantage of economies of scale and improved efficiency.\nThe Transaction\nThe Transaction does not result in...