Business
Therma Bright Finalizes Terms on Acquisition, Adds Advisory Board Member and Grants Options
Toronto, Ontario--(Newsfile Corp. - March 2, 2018) - Therma Bright Inc. (TSXV: THRM), ("Therma...
About this update from Therma Bright Inc.
[{"type":"text","content":"Therma Bright Finalizes Terms on Acquisition, Adds Advisory Board Member and Grants OptionsToronto, Ontario--(Newsfile Corp. - March 2, 2018) - Therma Bright Inc. (TSXV: THRM), (\"Therma Bright\" or the \"Company\"), a progressive medical device technology company, today is pleased to announce that further to its news releases on November 2, 2017, December 12, 2017 and January 30, 2018, the Company has now finalized negotiations with the vendor and is awaiting regulatory approval for the proposed acquisition of assets that include a consumer medical device for acne and other cosmetic applications that encompass both heat and light therapy. (the \"Proposed Acquisitions\"). Therma Bright has agreed with the vendor on the final terms of the definitive asset purchase agreement (\"APA\") for of the Proposed Acquisitions and has made application to the TSX Venture Exchange for approval of this transaction. Closing will occur once regulatory approval is received and upon completion of a financing. The Company intends to finance the initial purchase price payment required under the APA through debt, equity or a combination thereof with terms of such financing to be announced before closing. 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 closing of the transaction, a USD $750,000 cash payment will be payable, and the balance of USD $1,500,000 is payable over 3 years. The balance of USD $1,500,000 will be discounted by USD $200,000 if paid on or before June 30th, 2019. Upon successful completion of this transaction, Therma Bright intends to utilize over CAD $6,900,000 in operating losses against future income generated from the acquired products. Therma Bright also announces the appointment of a key member to its Advisory Board:Gilbert Sharpe, the former long-time Director of the Legal Branch of the Ontario Ministry of Health and Long-Term Care, brings invaluable experience from a distinguished 40-year career in legal practice and advisory roles. He recently established his own boutique healthcare advisory service, following 15 years in private practice as a partner at several major Bay Street law firms.Gilbert of...