VANCOUVER – ParcelPal Logistics Inc. (OTC:PTNYF) (CSE:PKG) (FSE:PT0) reported that, subsequent to the previously announced letter of intent on July 14, the parties related to the Company’s acquisition of its first United States delivery service company have signed the definitive agreements related thereto and anticipate closing within a week. This transaction effectively nearly doubles both the Company’s annual revenue and size of ParcelPal, which is additionally significant since it marks the first such acquisition in the history of the Company.
The total purchase price was $3.1 million USD, consisting of 60% cash and 40% in restricted shares of ParcelPal’s common stock. ParcelPal and Acquiree also entered into an exclusive services agreement with its principal business source (which also contain non-interference and non-competition clauses to further enhance the likelihood of the short and long term success of the acquired business).
The cash portion of the purchase price has been secured via a private placement financing, and will be paid in three tranches beginning with the closing date.
Rich Wheeless, CEO of ParcelPal Logistics stated: “This is an exciting day and the largest milestone to date for the Company. Since the day I joined ParcelPal, I have been working hard to increase margins, increase efficiency and to search for and execute upon expansion opportunities as they arise, including into the United States, which is the world’s largest consumer market. I believe that this acquisition is an excellent first step to gaining a foothold in the United States. This acquisition is equally exciting insofar as this instantly nearly doubles the size of the Company and its revenues (when factoring currency conversion rates), and allows us to benefit from existing synergies with our acquisition partner. Finally, I will continue to actively assess additional acquisitions and continue our client diversification, while simultaneously exploring other synergistic opportunities outside of purely last mile delivery – all in an effort to continue to diversify our business and provide increased shareholder value. I am beyond thrilled to be working with the Acquiree’s team and am pleased that they share the vision for the strategic direction of ParcelPal.”
Upon closing this week, Acquiree will become a subsidiary of ParcelPal Logistics Inc., but will continue to operate under its existing name with little to no interruption to ensure the quality and continuity of service that it has delivered to date.
ParcelPal is a Vancouver, British Columbia based company that specializes in last-mile delivery service and logistics solutions. They are a customer-driven, courier and logistics company connecting people and businesses through their network of couriers in cities including Vancouver, Calgary, Toronto and soon in other major cities in Canada and the United States.
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