Business
EMERGE Completes Sale of WholesalePet for US$9.25M, Expects Additional Cost Savings Related to Streamlined Business
EMERGE Completes Sale of WholesalePet for US$9.25M, Expects Additional Cost Savings Related to St...
About this update from Emerge Commerce Ltd
[{"type":"text","content":"\n \n \n \n EMERGE Completes Sale of WholesalePet for US$9.25M, Expects Additional Cost Savings Related to Streamlined Business\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 completes sale of WholesalePet for gross proceeds of\n \n US$9.25M\n \n \n \n In conjunction, EMERGE pays down the majority of its senior credit facility on closing, in addition to fully satisfying the deferred payment owed to WholesalePet\n \n \n The Company retains\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 required to service the go forward portfolio\n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Jan. 31, 2024\n \n \n /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM) (\"\n \n EMERGE\n \n \", or the \"\n \n Company\n \n \"), a premium e-commerce brand portfolio, is pleased to announce that, further to its press release dated\n \n January 24, 2024\n \n , it has successfully completed the sale of its indirect subsidiary corporation, Retails Store Networks, Inc. (dba \"WholesalePet.com\") (\"\n \n WSP\n \n \" or \"\n \n WholesalePet\n \n \") to Tiny Fund I, LP (the \"\n \n Buyer\n \n \") pursuant to a share purchase agreement (the \"\n \n Agreement\n \n \") dated\n \n January 23, 2024\n \n between the Buyer, WSP and Emerge US Holdings LLC (\"\n \n Emerge US\n \n \"), a subsidiary of the Company, as amended by an amending agreement to the Agreement (the \"\n \n Amending Agreement\n \n \") dated\n \n January 31, 2024\n \n between WSP, the Buyer, Emerge US and the Company (the \"\n \n Transaction\n \n \").\n \n \n \n Ghassan Halazon, Founder and CEO of EMERGE\n \n commented, \"While we remain big fans of WholesalePet, we believe there is no larger priority than paying down debt and reducing interest expense to position the Company for long-term success, with a focus on growing our go forward businesses. Between over\n \n US$5M\n \n of operating income generated by our WholesalePet investment to date and the\n \n US$9.25M\n \n sale price, we have made a modest gain on a ...