Mr. Simon Dealy reports

HIRE TECHNOLOGIES ANNOUNCES CLOSING OF SALE OF PROVISION BUSINESS

Further to its news release dated Aug. 1, 2023, Hire Technologies Inc. has closed the sale of its Provision business unit to Design Group Staffing Inc. (the purchaser), an arm's-length private company operating in the recruitment industry, for the cash purchase price of $4.5-million, pursuant to the terms of the definitive share purchase agreement dated July 31, 2023. Upon closing of the transaction, the purchaser acquired all of the shares in the capital of Provision IT Resources Ltd. from BTG Holdco Inc., a wholly owned subsidiary of Hire which held all of the issued and outstanding shares of Provision.

Upon closing of the transaction, the purchaser paid the company $3.5-million, $50,000 of which had already been paid as a deposit by the purchaser to the company. The purchaser will pay Hire the remainder of $1-million, subject to final adjustment, on completion and mutual written acknowledgment of the purchase price adjustment (as defined below) and collection of accounts receivable as of the closing date. The purchase price presumes a net tangible asset value of $1-million on a balance sheet free of debt other than normal course accounts payable and such other liabilities as the purchaser, in its sole and arbitrary discretion, approves in writing (the net tangible asset target). The purchase price will be adjusted on a dollar-for-dollar basis to the extent that the actual net tangible asset value on the closing date differs from the net tangible asset target and the accounts receivable as of the closing date have not been collected in a timely manner.

On Aug. 30, 2023, the company obtained the approval of the company's shareholders of the transaction by special resolution at a special meeting of its shareholders. No finder's fees were paid in connection with the transaction. The company plans to use the proceeds realized from the transaction to extinguish certain current debt and liabilities and for general working capital. For more information regarding the transaction, please see the company's news release dated Aug. 1, 2023, and the company's management information circular dated July 31, 2023, both available on the company's SEDAR+ profile.

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