Business
EMERGE Announces Signing of Definitive Agreement to Sell WholesalePet for US$9.25M, and Plans Major Debt Reduction
EMERGE Announces Signing of Definitive Agreement to Sell WholesalePet for US$9.25M, and Plans Maj...
About this update from Emerge Commerce Ltd
[{"type":"text","content":"\n \n \n \n EMERGE Announces Signing of Definitive Agreement to Sell WholesalePet for US$9.25M, and Plans Major Debt Reduction\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 \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n EMERGE has entered into a definitive agreement to sell WholesalePet for\n \n US$9.25M\n \n in cash to Tiny Fund I, LP\n \n \n In conjunction, EMERGE expects to pay down the majority of its senior credit facility on closing, in addition to fully satisfying the deferred payment owed to WholesalePet\n \n \n Following the Transaction, the Company will retain\n \n 4\n \n brands across\n \n 2\n \n main verticals, Grocery and Golf\n \n \n Additional cost savings expected from reduced HQ overheads\n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Jan. 24, 2024\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 (\"\n \n EMERGE US\n \n \") and Retail Store Networks, Inc. (dba \"WholesalePet.com\") (\"\n \n WSP\n \n \" or the \"\n \n Target\"\n \n ), a direct and indirect subsidiary of the Company respectively, have entered into a share purchase agreement (the \"\n \n Agreement\n \n \") dated\n \n January 23, 2024\n \n , with Tiny Fund I, LP (the \"\n \n Buyer\n \n \"), an arm's length third party to the Company and a private partnership of Tiny Ltd. (\"\n \n Tiny\n \n \"), Emerge US and the Target, pursuant to which EMERGE US intends to sell to the Buyer all of the issued and outstanding shares in the capital of WSP (the \"\n \n Transaction\n \n \").\n \n \n \n Ghassan Halazon, Founder and CEO of EMERGE\n \n commented, \"Consistent with the strategy we laid out in 2023 to prioritize debt paydown by exploring all strategic options available to the Company, the sale of WSP marks our most substantial transaction to date, eliminating the majority of our debt, saving us an estimated\n \n $1.38M\n \n in annual interest expense, and paving the way for a refresh scenario to double down on our profitable grocery and gol...