Dealnet Capital (TSXV:DLS) undergoes acquisition by Simply Green

• Finance company Dealnet Capital (DLS) has had its shares successfully taken up by Simply Green Home Services 
• After hitting record low share prices earlier this year, dissident shareholders took action against the company’s board of directors
• Thanks to immense pressure from the shareholders, Dealnet Capital’s directors accepted a take-over bid from Simply Green
• Gradually over the last seven months, Dealnet Capital’s share price has more than tripled as a result
• Dealnet Capital (DLS) last traded on October 16 for $0.16 per share

Finance company Dealnet Capital (DLS) has had its shares successfully taken up by Simply Green Home Services.

Earlier this year, the company hit an all-time low share price of three cents per share. Shortly after, on March 27, 2020, a group of dissident shareholders took action against the company’s board of directors.

These dissident shareholders, consisting of Capital Partners Corporation and Municipal Home Service Inc, were represented by Canadian businessmen Shail Silver and Dr Steven Small. 

In a letter dated March 27, 2020, the dissident shareholders stated their intent replace the company’s failing incumbent board with a new set of directors.  

Thanks to immense pressure from these shareholders, Dealnet Capital’s directors accepted a take-over bid from Simply Green.

After the company announced that it would be acquired by Simply Green on August 24, 2020, its share price spiked by 25 per cent on that day alone. This created over C$31 million of much-needed shareholder value for the ailing finance business.

Representatives of the dissident shareholders, Shail Silver and Dr Steven Small, commented on the actions taken to save Dealnet Capital.

“We made every effort to drive value and advocate on behalf of all shareholders. This transaction frees shareholders from being trapped in an illiquid and mismanaged company,” Shail said.

“Although short of our intended goal to drive Dealnet with a new board well beyond its $0.29 breakup value, our priority was always to serve the shareholders. Our efforts led the price of the shares to a multiple that shareholders could accept,” Steven said.

Since the shareholders’ letter of March 27, 2020, Dealnet Capital’s share price has gradually made a miraculous recovery. Over the last seven months, the company’s share price has more than tripled, rising from five cents to approximately $0.16 each.

Dealnet Capital (DLS) last traded on October 16 for $0.16 per share.