HIRE Technologies Announces Completion of Sale of Select Assets of its Headhunters Business and $4.7 Million Reduction to Current Liabilities
HIRE Technologies Inc. (OTCQB: HIRRF) has completed the sale of select assets from its Headhunters business unit to The Headhunters Recruitment Inc. and related parties. This transaction is categorized as an 'Exempt Disposition' under TSX Venture Exchange policies. CEO Simon Dealy indicated that the divestment reduces liabilities, including a significant $4.7 million contingent consideration, thus enhancing the company's financial standing. The Purchasers acquired THH's trademark, domain, and website, while employees of the business are offered continued employment. The sale is anticipated to yield a gain, contributing to a reduction in current liabilities by $4.7 million in Q2-2023, alongside a promissory note to the Purchasers for approximately $71,334.
- Sale of assets reduces liabilities by $4.7 million, strengthening financial position.
- Transaction allows for continued employment of Headhunters business unit employees.
- Anticipated gain from the sale to be recognized in Q2-2023.
- None.
TORONTO, ON / ACCESSWIRE / April 27, 2023 / HIRE Technologies Inc. (TSXV:HIRE.V)(OTCQB:HIRRF) ("HIRE" or the "Company") is pleased to announce that further to its news release dated March 13, 2023, it has closed the sale of select assets (the "Transaction") from its Headhunters business unit (the "Business") to the former shareholders (the "Former THH Shareholders") of The Headhunters Recruitment Inc. ("THH") and 2498820 Alberta Ltd. (together, with the Former THH Shareholders, the "Purchasers"). The Transaction is an "Exempt Disposition" as defined in the policies of the TSX Venture Exchange (the "TSXV").
"With this transaction, HIRE takes a pragmatic approach to optimizing our business by divesting select assets of the Headhunters business unit. This move enables HIRE to reduce liabilities, including a significant
Pursuant to a Settlement and Asset Purchase Agreement dated March 10, 2023, among the Company, THH, and the Purchasers, the Purchasers acquired the rights to THH's trademark and domain name, email accounts, and website. The Former THH Shareholders are also released from their non-compete agreements with THH and the Company. The Purchasers have offered to continue employment for all the employees of the Business. As consideration for select assets and certain specified liabilities of the Business, the Purchasers paid HIRE a nominal cash amount.
In connection with the Transaction, the Purchasers and HIRE entered into a mutual release agreement relating to claims the Former THH Shareholders had under the original Share Purchase Agreement dated September 2021 (the "Share Purchase Agreement"), including a
For more information on the Transaction, please see the Company's news release dated March 13, 2023.
About HIRE Technologies Inc.
HIRE is a capital allocator focused on workforce management and staffing solutions. The company aims to develop a diverse portfolio of brands that leverage their synergies, scale, and reach. HIRE has expertise in building and expanding staffing and executive search companies and benefits from a scalable shared services platform. For additional information, visit hire.company.
Contacts
Simon Dealy
Chief Executive Officer
(647) 264-9196
sdealy@hire.company
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") within the meaning of applicable Canadian securities legislation.
All statements that address activities, events, or developments that the Company expects or anticipates will, or may, occur in the future, including but not limited to statements regarding the expectation that the Company will recognize a gain on the sale and an estimated reduction to current liabilities of
All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE: HIRE Technologies Inc.
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FAQ
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