Business
The Jenex Corporation Signs Letter of Intent to Acquire Medical Device Assets
Toronto, Ontario--(Newsfile Corp. - November 2, 2017) - The Jenex Corporation (TSXV: JEN.H) ...
About this update from Therma Bright Inc.
[{"type":"text","content":"The Jenex Corporation Signs Letter of Intent to Acquire Medical Device AssetsToronto, Ontario--(Newsfile Corp. - November 2, 2017) - The Jenex Corporation (TSXV: JEN.H) (\"Jenex\" or the \"Company\"), a progressive medical device technology company, today announces that it has entered into a non-binding letter of intent (\"LOI\" or the \"Proposed Acquisition\") for two medical device products with established sales and cash flow (the \"Acquisition Targets\"). The Acquisition Targets have been sold worldwide under established brand names. The Acquisition Targets utilize thermal therapy to relieve cosmetic related acne and other topical related applications. The Acquisition Targets will remain undisclosed as the LOI is conditional upon the execution of a definitive share purchase agreement with an anticipated closing date of January 31st, 2018. The Proposed Acquisition will be subject to customary due diligence to be completed by December 31st, 2017.Based on the unaudited financial statements for 2016 the Acquisition Targets have generated approximately USD $3.0 million of revenue and approximately USD $1,800,000 of free cash flow (\"FCF\"). If the Proposed Acquisition is completed a USD $750,000 cash payment is payable at closing and USD $1,500,000 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 the Proposed Acquisition Jenex intends to utilize over CAD $6,900,000 in operating losses against future income generated from the Acquisition Targets. Rob Fia, CEO, commented:\"We look forward to completing the Proposed Acquisition over the next 90 days which adds a substantial increase to our top line revenue and earnings. The Proposed Acquisition will be made at an attractive multiple to FCF and will be immediately accretive to Jenex upon closing. The Acquisition Targets provide a strategic fit to enhance our existing thermal therapy medical device offerings. We have identified a wide-range of synergies including potential new distribution channels for our existing product offerings and expect to identify additional opportunities as we complete our due diligence. We believe the Proposed Acquisition represents an ideal fit, create...