- SustainCo Inc (TSXV:SMS) has entered into an agreement to sell its wholly owned subsidiary, Clean Energy Development Corp (CED)
- According to the agreement, Groundheat Solar Wind Corp will buy all issued and outstanding shares of CED
- Groundheat will pay SustainCo an aggregate purchase price of C$50,000 in cash
- If the transaction goes through, SustainCo’s business will continue to operate through another subsidiary, VCI Controls Inc
- Before the market opens, SustainCo Inc (SMS) is trading at 8.5 cents per share
SustainCo (TSXV:SMS) has entered into a definitive agreement to sell its wholly owned subsidiary, Clean Energy Development Corp (CED).
The agreement is with a geothermal construction company, Groundheat Solar Wind Corp.
According to the agreement, Groundheat will buy all the issued and outstanding shares of CED. In consideration for the acquisition, Groundheat will pay SustainCo an aggregate purchase price of $50,000 in cash.
The transaction provides SustainCo with a way to monetise its assets in CED. As such, SustainCo’s board of directors unanimously decided that the agreement was in the company’s best interests.
Completion of the transaction is still subject to the customary conditions. These include applicable regulatory and stock exchange approvals.
If the transaction is completed according to the agreement terms, SustainCo’s will conduct its operations through another subsidiary. The other subsidiary, VCI Controls, focuses on digital controls and mechanical services, performance monitoring, and energy efficient solutions.
SustainCo’s Chief Financial Officer, Chris Hazelton, commented on the company’s movements during the COVID-19 pandemic. He also credited SustainCo’s workers as the source of the company’s fortune thus far.
“We will be focusing our success and expansion of VCI Controls’ core business, by providing additional services during this difficult time. For three decades, VCI Controls’ clients have come to expect and rely on our prompt, professional, and knowledgeable team. Our team goes well beyond the basics, providing complete satisfaction and peace of mind.
“We would like to thank employees for their commitment and hard work in the past and particularly during these challenging times. They are our strength and the reason for our success,” he said.
Before the market opens, SustainCo Inc (SMS) is trading at 8.5 cents per share