Source: ParcelPal.
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • ParcelPal (PKG) has entered the U.S. market with a letter of intent to acquire a U.S. delivery company
  • The total purchase price is US$3.1 million, with 60 per cent payable in cash and 40 per cent in restricted ParcelPal shares
  • In fiscal 2020, the acquiree generated gross revenues of approximately US$4.6 million
  • The parties intend to complete the transaction between July 30 and August 10, 2021
  • ParcelPal is a Vancouver-based company that specializes in last-mile delivery service and logistics solutions
  • ParcelPal (PKG) is up by 18.18 per cent and is currently trading at $0.13 per share

ParcelPal (PKG) has entered the U.S. market with a letter of intent to acquire a U.S. delivery company.

Under the terms of the transaction, ParcelPal will acquire 95 per cent of the acquiree and the acquiree will enter into an exclusive services agreement with its principal business source.

The total purchase price is US$3.1 million, with 60 per cent payable in cash and 40 per cent in restricted ParcelPal shares. The cash portion may stem from a combination of existing cash, an equity line of credit facility or non-brokered private placement financing.

In fiscal 2020, the acquiree generated gross revenues of approximately US$4.6 million.

The parties intend to complete the transaction between July 30 and August 10, 2021.

Rich Wheeless, CEO of ParcelPal, commented,

“I believe the acquisition of a revenue generating, profitable, U.S. company is a very positive step in the right direction for the company. This initial acquisition will not only add significant revenue, but is also expected to serve as a stepping-stone for further U.S. expansion and eventual client diversification opportunities in a new geographic location. We are thrilled to be working with the acquiree’s team and are pleased that they share our vision for the strategic direction of ParcelPal and the streamlined delivery services path.”

ParcelPal is a Vancouver-based company that specializes in last-mile delivery service and logistics solutions. 

ParcelPal (PKG) is up by 18.18 per cent and is currently trading at $0.13 per share as of 10:12 am ET.

More From The Market Herald
TAAT Lifestyle & Wellness Ltd.

" TAAT (CSE:TAAT) closes acquisition of Ohio-based tobacco distributor

TAAT Global Alternatives (TAAT) has completed its acquisition of HLND Holdings, Inc.

" Micromem Technologies (CSE:MRM) closes private placement

Micromem Technologies (MRM) has closed a private placement for gross proceeds of $282,000.
PyroGenesis - Vice President of Sales, Massimo Dattilo.

" PyroGenesis (TSX:PYR) completes titanium powder order from Aubert & Duval

PyroGenesis (PYR) has completed a 100 kg titanium powder order from Aubert & Duval.

" Unisync (TSX:UNI) withdraws its OCFC2 bid

Unisync (UNI) has reassessed the economic feasibility of a previous opportunity with the Department of National Defence.