Under the terms of the Agreement, the Company has sold the Canadian Business (assets and associated liabilities) constituting its Now Prepay division to PSI in exchange for
(a) a deposit of
(b) a cash payment of
(c) a further $450,000 (the "Holdback"), to be paid within 90 days following the closing of the transaction.
The Holdback is subject to further adjustment based on the Working Capital of the Canadian Business being either (i) less than -
The transaction contemplated by the Agreement required the approval of the shareholders of the Company by way of a special resolution requiring two-thirds of the votes cast on the matter to vote in favour of the transaction. The Company obtained such shareholder approval at an annual general and special meeting of its shareholders held on
Effective on the closing,
The Company intends to use the proceeds from the sale to support its ongoing operations and to further its growth strategy in
In connection with this transaction, PSI has agreed to license and use
For more information about this transaction, please contact
This news release contains statements which are not current statements or historical facts and are "forward-looking information" within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, contained in this news release constitute forward-looking information. Wherever possible, words such as "plans", "expects" or "does not expect", "budget", "forecasts", "projections", "anticipate" or "does not anticipate", "believe", "intent", "potential", "strategy", "schedule", "estimates" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved and other similar expressions have been used to identify forward-looking information. These forward-looking statements relate to, among other things, the anticipated use of proceeds, the potential of the Brazilian operations, and the transition with PSI going forward.
Although the forward-looking information in this news release reflects the Company's current beliefs on the date of this news release based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Company cannot be certain that actual results, performance, achievements, prospects and opportunities, either expressed or implied, will be consistent with such forward-looking information. By its very nature, forward-looking information necessarily involves significant known and unknown risks, assumptions, uncertainties and contingencies that may cause the Company's actual results, assumptions, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forwardlooking information. These risks and uncertainties include, among other things, revenue growth, operating results, the market demand for the Company's products, product development, and litigation as well other factors described in the Risks Related to our Business Section in the Company's 2013 annual Management Discussion and Analysis. There may be other factors that cause results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended.
There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differmaterially, from the results, performance or achievements that are or may be expressed or implied by such forwardlooking statements contained in this news release. Accordingly, all such factors should be considered carefully when making decisions with respect to the Company, and prospective investors should not place undue reliance on forwardlooking information. The Company assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT:
VendTek Systems Inc. Samantha White604-805-4653 or 1-800-806-4958 firstname.lastname@example.org / www.nowprepay.com Source: VendTek Systems Inc.