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Uniserve Communications Corporation (TSXV:USS) announced that it has entered into a definitive agreement with RootCellar Technologies to purchase the assets of RootCellar, a managed service provider based in southern Ontario Canada, focused on disaster recovery and data management. Uniserve is a unified communications company combining voice, data and media all into one seamless solution, one …
Uniserve Communications Corporation (TSXV:USS) announced that it has entered into a definitive agreement with RootCellar Technologies to purchase the assets of RootCellar, a managed service provider based in southern Ontario Canada, focused on disaster recovery and data management.
Uniserve is a unified communications company combining voice, data and media all into one seamless solution, one bill and one point of contact.
As quoted from the press release:
The acquisition of the RootCellar assets will provide Uniserve with a highly qualified pool of employees, a rich ecosystem of vendor partners, and an existing sales funnel with historical multi-year recurring profitable revenues projected to be circa $8.5m by their year-end 31st July 2018.
Uniserve’s CEO Nicholas Jeffery stated: “With the acquisition of RootCellar, Uniserve will continue to drive its revenues, its enterprise mix of business and strengthen the partner alliances across Canada. RootCellar will integrate into Uniserve’s existing business in Kitchener and will gain the opportunity to work with a very experienced managed services technology and sales solutions team.”
The transaction is subject to TSXV approval and is expected to close on or before June 30, 2018. The transaction is an arm’s length transaction.
Uniserve’s funding for the purchase will be through a private placement of 25,000,000 Units at $0.14 per Unit, each Unit consisting of one common share and one transferable share purchase warrant. One warrant will be exercisable for one additional common share at $0.16 per share as to one-quarter of the warrants being issued, for a nine-month period, and the remaining three-quarters being issued at $0.20 per share for a two-year period. Directors of the Company are committed to participate in approximately 60% of the units being offered pursuant to this placement. $2M of the proceeds from the private placement will be used for the acquisition of RootCellar and $1.5M for general working capital purposes. A finder’s fee may be payable in relation to this private placement and the same is subject to regulatory approval. The financing is subject to TSXV approval and all securities will be subject to a four month hold period.