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Kelowna, British Columbia / TheNewswire / June 23, 2016 - Decisive Dividend Corporation (TSX-V: DE) ("Decisive" or the "Corporation"), a growth oriented acquisition company with its common shares ("Common Shares") listed on the TSX Venture Exchange (the "TSXV"), is pleased to announce the closing of its previously announced acquisition of Unicast Inc. ("Unicast"), for an aggregate purchase price of $11,000,000, subject to customary post-closing adjustments for working capital.
Unicast designs, manufactures and markets wear parts for the mining, aggregate and cement industries. Founded in 1994, it operates from an 8,440 square foot manufacturing facility based in Kelowna, British Columbia. Unicast supplies wear parts and valves to all four multi-national cement companies operating in North America. Its growing distributor base includes six distributors in Canada, seven distributors in the United States and three distributors in other countries. In 2012, Unicast introduced titanium carbide (TiC) wear parts which provide much longer wear life than comparative products. Currently Unicast believes that it is the only company that offers TiC wear parts in North America. In 2014Unicast introduced a new two-way valve product for the cement industry, which positions Unicast as one of only two suppliers of two-way valve solutions for cement plants in North America.
The management team of Unicast is led by its founder, Mr. Gerry L'Esperance, who will remain as President of Unicast following the acquisition.
The purchase price of Unicast Inc. was satisfied through the issuance of 516,996 Common Shares at a deemed value of $3.00 per Common Share, with the balance paid in cash. The cash portion of the purchase price was paid from the net proceeds of a $5,500,000 loan from the Corporation's senior lender and from the net proceeds of a private placement of Common Shares (the "Private Placement") led by Industrial Alliance Securities and Laurentian Bank Securities pursuant to which the Corporation issued an aggregate of 1,659,114 Common Shares for aggregate gross proceeds of $4,977,342.
"We are very excited about completing the acquisition of Unicast," commented James Paterson, CEO of Decisive. "This acquisition adds diversity to our revenue stream as well as opportunities for growth in new markets for us. Gerry L'Esperance and his team have done a great job of building the business. They are well known for their unique and long lasting wear part solutions as well as their excellent customer service and competitive pricing. The markets in which they operate are significant in size and Unicast is well positioned for future growth. We really look forward to working with the team at Unicast and building on their success."
Gerry L'Esperance, the founder and President of Unicast stated, "Over the past 20 years, my family and employees have built a company with a diverse product offering in a growing industry. Unicast has been successful over the years through the multiple markets we service and our commitment to customer service and overall excellence. We chose Decisive because of their operating philosophy which will enable Unicast to continue to grow and expand and provide world class wear-part products to the mining, aggregate and cement industries."
About Decisive Dividend Corporation
The Corporation owns the Blaze King group of companies and Unicast Inc. The Common Shares trade on the TSXV under the trading symbol "DE".
The TSXV has not in any way passed upon the merits of the Private Placement and has neither approved nor disapproved of the contents of this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. David Redekop, Chief Financial Officer
#104, 1420 St. Paul Street
Kelowna, BC V1Y 2E6
Telephone: (250) 870-9146
Cautionary Statement
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on management's current beliefs, assumptions and expectations as to the outcome and timing of such future events. Actual future results may differ materially. Risk factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include all risks associated with the businesses carried on by operating subsidiaries of the Corporation. The Corporation cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
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This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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