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TORONTO, Sept. 30, 2020 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (TSXV: XX) (OTC: ALXXF) (“Avante” or the “Company”) is pleased to announce the completion of the previously announced sale of Avante’s 70% ownership interest in City Wide Locksmiths Inc. (“City Wide”), which closed on September 30, 2020.
The majority position of City Wide was originally acquired by Avante on April 1, 2016 under previous management’s strategy of “Own the Home.” Since acquisition, City Wide has contributed to Avante’s top and bottom line, provided access to many tightly controlled product lines, and generated cross selling opportunities between divisions. During the first quarter of fiscal 2021 ending June 30, 2020, City Wide represented 6.3% of Avante’s reported consolidated revenue, or 4.4% if adjusted for only owning 70% of that business.
“We are pleased to complete the divestiture of our majority position of City Wide to members of the Shearer family and wish them great success in the future as they continue to expand their family business,” said Craig Campbell, CEO and Director of Avante. “The investment in City Wide provided a solid dividend return to Avante and a beneficial internal partnership between our divisions. However, we chose to divest our position as City Wide is no longer core to our strategy of building a one-stop shop security solutions provider for both residential and enterprise customers. Proceeds from selling City Wide strengthens our financial position and allows us to focus financial resources and managerial effort on Avante’s core, wholly-owned businesses.”
The sale price for the Company’s 70% interest was $2,341,500, of which $1,800,000 was paid on closing, $450,000 represents an amortizing, interest-bearing vendor take back note payable over not more than five years from closing and $91,500 was received before closing.
No advisory fees were payable or paid by the Company in connection with the transaction.
About Avante Logixx Inc.
Avante Logixx Inc. (TSXV: XX) is a Toronto headquartered provider of security solutions. We acquire, manage, and build industry-leading businesses that provide specialized, mission-critical solutions that address the needs of our customers. Our businesses continuously develop innovative solutions that enable our customers to achieve their objectives. With an experienced team and a proven track record of solid growth, we are taking steps to establish a broad portfolio of security businesses to provide our customers and shareholders with exceptional returns. Please visit our website at www.avantelogixx.com and consider joining our investor email list.
Avante Logixx Inc.
Craig Campbell
CEO
(416) 923-6984
[email protected]
Forward-Looking Information
All statements in this press release, other than statements of historical fact, may constitute “forward-looking information” with respect to Avante within the meaning of applicable securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or a variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. This forward-looking information includes statements with respect to, among other things, discussions of future plans and forecasts and statements as to management’s expectations and intentions with respect to the company’s acquisitions and the expected impact of such acquisitions.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, the company realizing on the anticipated value of completed acquisitions , the company maintaining its projected growth, the company’s ability to execute on its strategic vision, the ability of the company to identify revenue and cost synergies, general economic conditions or conditions in the financial markets and the risks identified in Avante’s Management Discussion & Analysis, Annual Information Form and other continuous disclosure. This list is not exhaustive of the factors that may affect any of Avante’s forward-looking information. In connection with the forward-looking statements contained in this and subsequent press releases, Avante has made certain assumptions about its business and the industry in which it operates, including that no significant events occur outside of Avante’s normal course of business, assumptions about trends in manpower and technology costs, assumptions made about the business of completed acquisitions, and assumptions about the company’s ability to leverage Avante’s and acquired company’s collective customer bases and networks. Although management believes that the assumptions inherent in the forward-looking statements are reasonable as of the date the statements are made, forward-looking statements are not guaranteeing future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty of the statements. Avante’s forward-looking information is based on the beliefs, expectations, and opinions of management on the date the statements are made, and Avante does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, readers should not place undue reliance on forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
