Business
Uniserve Completes Strategic Asset Purchase of Cyclone Systems Inc.
(TheNewswire) Vancouver, BC: February 5, 2025  – TheNewswire - Uniserve...
About this update from Uniserve Communications Corporation
[{"type":"text","content":"Uniserve Completes Strategic Asset Purchase of Cyclone Systems Inc.\n\n\n (TheNewswire)\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n Vancouver, BC: February 5, 2025  –\n \n\n TheNewswire -\n \n\n Uniserve Communications Corporation (the “Company” or\n“Uniserve”) (TSXV: USS), a leading provider of IT solutions and\nservices for both business and residential customers across Canada, is\npleased to announce that it has closed its acquisition of the business\nand assets of Cyclone Systems Inc. (“Cyclone”).\n \n\n\n\n Cyclone is a full service Managed IT Services Provider\nwith clients across multiple provinces. Their client base and services\nmatch very well with Uniserve’s existing service offerings. It is\nexpected that this transaction will add approximately $2,500,000 in\ntop line revenues and $800,000 in earnings before amortization,\ninterest and taxes to Uniserve’s business each year. This\ntransaction represents a significant step forward in Uniserve’s\ngrowth strategy, enhancing its service offerings and expanding its\nmarket reach.\n \n\n\n\n The transaction was completed pursuant to an Asset\nPurchase Agreement (the “APA”) between Uniserve and Cyclone dated\nas of January 24, 2025. The purchase price was $2,350,000, with\n$1,350,000 paid in cash on closing, and with the remaining $1,000,000\nbeing paid through the issuance of a convertible note (the “Note”)\nwith a three year term, bearing annual interest at 6%, payable\nmonthly. The Note is secured against all of the Cyclone assets that\nwere acquired by Uniserve under the transaction.\n \n\n\n\n In\n \n\n each of the 3 years following\nclosing of the transaction, Uniserve may elect to pay up to 50% of the\nthen outstanding principal sum under the Note, and upon Uniserve so\nelecting Cyclone may choose to instead convert 50% of the proposed\nprepayment amount into common shares of the Company (each, a\n“Share”). On the first and second anniversaries of closing, 10% of\nthe then outstanding principal sum (less any amounts prepaid by\nUniserve for such year) will be payable by Uniserve in cash, provided\nthat Cyclone may elect to instead receive an anniversary payment in\nShares.\n \n\n\n\n Any Shares issued under the Note will ...