Uniserve Executes LOI to Expand Operations in Ontario

Core Viewpoint - Uniserve Communications Corporation has entered into a Letter of Intent to acquire an Ontario-based Managed Service Provider, enhancing its service offerings and expanding its operations in eastern Canada [1][2]. Group 1: Acquisition Details - The acquisition is expected to bring approximately CAD $5.5 million in top-line sales and an expected EBITDA of CAD $1.5 million, providing a solid platform for scaling operations in Ontario [2]. - The total purchase price for the transaction is expected to be CAD $6,500,000, with payments structured as follows: CAD $2,500,000 in cash, CAD $2,000,000 in common shares at no less than CAD $0.60 per share, and CAD $2,000,000 via a 50% convertible note [3]. - The convertible note will have varying conversion prices over three years, starting at CAD $0.75 per share in the first year [3]. Group 2: Transaction Conditions - The transaction is subject to the execution of a definitive agreement within 30 days, further due diligence, and approvals from the Company's Board of Directors and the TSX Venture Exchange [4]. - The Company will not assume any long-term debt of the MSP, and the MSP and its shareholders are arm's length to the Company [3]. Group 3: Company Overview - Uniserve provides IT solutions and technology services across Canada, focusing on Data Centre Solutions, Managed IT Services, and Business Internet [5]. - The Company aims to support Canadian businesses in their digital transformations by enhancing its bandwidth and infrastructure capabilities [2].