17:39:16 EDT Fri 17 Aug 2018
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Atlas Engineered Products Ltd
Symbol C : AEP
Shares Issued 30,703,555
Close 2017-11-15 C$ 0.60
Recent Sedar Documents

Atlas Engineered to acquire B.C. truss manufacturer

2017-11-16 09:21 ET - News Release

Mr. Rob Gamley reports

ATLAS ENGINEERED PRODUCTS TO ACQUIRE CASTLEGAR TRUSS MANUFACTURER AND ANNOUNCES INVESTOR RELATIONS ENGAGEMENT

Atlas Engineered Products Ltd. has entered into a letter of intent with Selkirk Truss (2010) Ltd., whereby the company has agreed to acquire all of the issued and outstanding shares of Selkirk.

Guy Champagne, president of Atlas, commented: "We are very proud to announce the acquisition of Selkirk as the first step of our acquisition program to broaden our geographic reach. Not only will this transaction result in a 20-per-cent growth in annual revenues for the company, it provides us with access to the Kootenay region."

Terms of transaction with Selkirk

Under the binding letter of intent, the company and Selkirk have agreed to negotiate a definitive agreement, whereby the company will acquire all of the issued and outstanding shares of Selkirk for $150,000 in common shares of the company. The consideration shares will be issued at the market price (as defined by the rules of the TSX Venture Exchange) on the date of this news release.

In addition, the shareholder of Selkirk will be entitled to receive up to an additional $600,000 in common shares of the company upon Selkirk achieving the following milestones: (1) $200,000 in common shares of the company if Selkirk's net income exceeds $150,000 in its 2018 fiscal year-end; (2) a further $200,000 in common shares of the company if Selkirk's cumulative net income exceeds $400,000 for fiscal 2018 and 2019; and (3) a further $200,000 in common shares of the company if Selkirk's cumulative net income exceeds $1.1-million for fiscal 2018, 2019 and 2020. The pricing of the performance shares will be based on the date the shares are issued.

The principal of Selkirk will also enter into a three-year management contract, which will include non-solicitation and non-competition clauses.

The company will be entitled to carry out due diligence until Dec. 15, 2017. Upon completion of due diligence, the parties will enter into the definitive agreement setting forth the terms and conditions of the transaction by Dec. 31, 2017. Completion of any transaction with Selkirk is subject to a number of conditions, including, but not limited to, completion of due diligence, negotiation of definitive agreements in respect of such a transaction and receipt of any required regulatory approvals. A transaction cannot be completed until these conditions are satisfied, and there can be no assurance that a transaction will be completed at all.

The company is also pleased to announce that it has appointed Contact Financial as its investor relations firm. Contact will assist the company with the development and execution of a comprehensive strategic communications program.

Contact Financial is a Vancouver-based firm specializing in assisting emerging growth companies with media relations, capital markets experience, brand building/awareness and developing strategies to strengthen relations and communications between companies or individuals associated with the firm. Contact Financial will assist Atlas in gaining increased exposure to investors through the dissemination of corporate information to a network of on-line venues, brokerage firms, financial institutions and private investors.

"Atlas is one of the best performing truss and engineered wood products companies in Western Canada and we are thrilled to present this exciting growth opportunity to our investor ecosystem," stated Kirk Gamley, president and chief executive officer of Contact Financial. "Atlas already has the leadership and technical teams in place to successfully execute its acquisition strategy and consolidate this highly fragmented, unique industry."

Contact Financial has been appointed for an initial term of six months, which can be extended on a monthly basis at the option of the company. Contact Financial will be paid for provision of its services a monthly fee of $4,000 (plus GST), subject to the approval of the TSX Venture Exchange.

Other than 350,000 common shares held directly and indirectly by Mr. Gamley and Contact Financial, none of the Contact Financial group has any interest, directly or indirectly, in the company or its securities, although it may choose to acquire shares in the company in the future. Contact Financial does not intend to undertake any market-making activities.

About Atlas Engineered Products Ltd.

Atlas Engineered Products is one of British Columbia's leading suppliers of trusses and engineered wood products. The company was formed over 18 years ago and operates manufacturing and distribution facilities in Nanaimo to meet the needs of residential and commercial builders. Atlas has expert design and engineering teams, a multiple-shift state-of-the-art truss manufacturing operation, and large inventories of engineered beam and flooring components. Atlas aims to grow its base of business across Canada by pursuing an aggressive acquisition and consolidation strategy, and will continue to bring its construction industry partners unparalleled excellence in service, product and support.

We seek Safe Harbor.

© 2018 Canjex Publishing Ltd. All rights reserved.