Atlas Engineered Products announced mid November $520,506 in earnings from operations in Q1- now they have entered into a letter of intent with Selkirk Truss to acquire all of the issued and outstanding shares of Selkirk.
Guy Champagne, president of Atlas, commented: “We are very proud to announce the acquisition of Selkirk as the first step of our acquisition program to broaden our geographic reach. Not only will this transaction result in a 20-per-cent growth in annual revenues for the company, it provides us with access to the Kootenay region.”
Terms of transaction with Selkirk
Under the binding letter of intent, the company and Selkirk have agreed to negotiate a definitive agreement, whereby the company will acquire all of the issued and outstanding shares of Selkirk for $150,000 in common shares of the company.
In addition, the shareholder of Selkirk will be entitled to receive up to an additional $600,000 in common shares of the company upon Selkirk achieving the following milestones: (1) $200,000 in common shares of the company if Selkirk’s net income exceeds $150,000 in its 2018 fiscal year-end; (2) a further $200,000 in common shares of the company if Selkirk’s cumulative net income exceeds $400,000 for fiscal 2018 and 2019; and (3) a further $200,000 in common shares of the company if Selkirk’s cumulative net income exceeds $1.1-million for fiscal 2018, 2019 and 2020. The pricing of the performance shares will be based on the date the shares are issued.
The principal of Selkirk will also enter into a three-year management contract, which will include non-solicitation and non-competition clauses. Read more here…
Financial highlights for the first quarter 2018:
- Strong quarterly performance with revenues and earnings reaching record levels during the quarter leading into the RTO;
- Record sales of $2,739,058 for the quarter ended Aug. 31, 2017, compared with $1,960,390 in 2016, an increase of 40 per cent;
- Gross margins of 27 per cent;
- Income from operations of $520,506 compared with income from operations of $439,413 in 2016, an increase of 18.5 per cent;
- Adjusted earnings before interest, taxes, depreciation and amortization* of $556,811 (20.3 per cent of total revenue).
30,703,555 shares issued.
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Altas Engineered Products is not a client nor an advertiser. The author does not own shares in Atlas Engineered at this time.