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 $4.7 million contingent consideration, which ultimately strengthens our financial position", said Simon Dealy, HIRE's Chief Executive Officer.
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 $4.7M liability. The Company anticipates that it will recognize a gain on the sale, which will be recorded in Q2-2023 along with an estimated reduction to current liabilities of $4.7M in contingent consideration for that which was owed to the Purchasers in connection with the Share Purchase Agreement. Additionally, the Company has agreed to issue to the Purchasers an unsecured three-year term 8% promissory note with an estimated principal amount of approximately $71,334, in partial satisfaction for the mutual release of claims under the Share Purchase Agreement.
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
[email protected]
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 $4.7M are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by, or include words such as "may" "will", "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "proposes", "anticipates", "targeted", "continues", "forecasts", "designed", "goal", or the negative of those words or other similar or comparable words. Although the management of the Company believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting it and the staffing industry can be found in the Company's MD&A and its continuous disclosure record available on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.
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.