Business
Jenex Completes Due Diligence on Acquisition Targets
Toronto, Ontario--(Newsfile Corp. - January 30, 2018) - The Jenex Corporation (TSXV: JEN), ("J...
About this update from Therma Bright Inc.
[{"type":"text","content":"Jenex Completes Due Diligence on Acquisition TargetsToronto, Ontario--(Newsfile Corp. - January 30, 2018) - The Jenex Corporation (TSXV: JEN), (\"Jenex\" or the \"Company\"), a progressive medical device technology company, today is pleased to announce that further to its news releases on November 2, 2017 and Dec 12, 2017, the Company has now completed and is satisfied with due diligence on two medical device products with established sales and cash flow. The proposed acquisition assets include a consumer medical device for acne and other cosmetic applications that encompass both heat and light therapy. (the \"Proposed Acquisitions\"). Jenex has agreed with the vendor to now proceed to negotiate the final terms of the definitive asset purchase agreement (\"APA\") for of the Proposed Acquisitions and expects to close the transaction by February 28th, 2018. The Company intends to finance the Proposed Acquisitions through debt, equity or a combination thereof expected to be announced in the near future. Jenex will announce the vendor and brand names of the Proposed Acquisition once the APA is signed.As previously reported on November 2, 2017 and based on the unaudited financial statements for 2016 the Proposed Acquisitions have generated approximately USD $3.0 million of revenue and approximately USD $1,800,000 of free cash flow (\"FCF\"). Upon completion of the APA, a USD $750,000 cash payment will be payable at closing and USD $1,500,000 will be payable in royalties over 3 years. The royalty of USD $1,500,000 will be discounted by USD $200,000 for total royalties payable in the amount of USD $1,300,000 if paid on or before June 30th, 2019. Upon successful completion of this transaction, Jenex intends to utilize over CAD $6,900,000 in operating losses against future income generated from the acquired products. Rob Fia, CEO, commented:\"We are excited to move ahead with the closing of the Proposed Acquisitions. Jenex has received material interest to market and sell the new products and our other product line up overseas in China and elsewhere after visiting the Chinese Global Financial Forum during December. The acquisition targets provide a strategic fit to enhance our existing thermal therapy medical device offerings and will be made at an attractive multiple to FCF and will be immediately accretive to Jenex ...