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EMERGE Announces Signing of Definitive Agreement to Sell BattlBox for US$7.2M, and Acceleration of Debt Paydown
EMERGE Announces Signing of Definitive Agreement to Sell BattlBox for US$7.2M, and Acceleration o...
About this update from Emerge Commerce Ltd
[{"type":"text","content":"\n \n \n \n EMERGE Announces Signing of Definitive Agreement to Sell BattlBox for US$7.2M, and Acceleration of Debt Paydown\n \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.prngen2{\nPADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: TOP; TEXT-ALIGN: LEFT; BORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; BORDER-BOTTOM:black 0pt; BORDER-LEFT:black 0pt\n}\n.prnml4{\nMARGIN-TOP:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.33em !IMPORTANT\n}\n.prnbcc{\nBORDER-COLLAPSE: COLLAPSE\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n /NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN\n \n THE UNITED STATES\n \n /\n \n \n \n \n EMERGE has entered into a definitive agreement to sell BattlBox for\n \n US$7.2M\n \n , including\n \n US$6M\n \n in cash, and the assumption of\n \n US$1.2M\n \n in deferred consideration by the Buyer\n \n \n In conjunction, EMERGE plans to utilize\n \n C$7M\n \n to pay down its senior credit facility on closing. EMERGE now expects to reduce its credit facility to approximately\n \n C$15M\n \n by Q3, down from\n \n C$25M\n \n a year ago\n \n \n Interest expense savings from debt repayment expected to be\n \n C$1M\n \n annually, slightly exceeding the free cash flow generated from BattlBox Group in 2022\n \n \n Carnivore Club, a business originally acquired with BattlBox, will remain an EMERGE brand, and be housed under truLOCAL, with more impactful synergies expected\n \n \n Following the Transaction, EMERGE will retain 7 brands across 4 verticals, with an e-commerce portfolio approaching\n \n C$100M\n \n in Gross Merchandise Sales\n \n (1)\n \n (\"GMS\"), and a focus on 'recession-resilient', asset-light business models with strong EBITDA to cash flow conversion\n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n April 3, 2023\n \n \n /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM) (\"\n \n EMERGE\n \n \", or the \"\n \n Company\n \n \"), a diversified acquirer and operator of niche e-commerce brands, announces that Emerge US Holdings LLC (the \"\n \n EMERGE US\n \n \") and Battlbox LLC (the \"\n \n BattlBox\n \n \"), a direct...