- Tribe has completed the acquisition of property
management firm, Meritus Group Management Inc., which expands
Tribe's footprint in the Province of Ontario.
- This acquisition adds over 5,000 additional homes
under management for Tribe
/NOT FOR DISTRIBUTION IN THE U.S. OR TO U.S. NEWSWIRE
SERVICES./
VANCOUVER, BC, Dec. 18,
2023 /CNW/ - Tribe Property Technologies Inc. (TSXV:
TRBE) (OTCQB US: TRPTF) ("Tribe" or the "Company") is pleased to
announce the completion of its acquisition of Meritus Group
Management Inc. ("Meritus"), an arm's-length party, strengthening
Tribe's presence in the greater Toronto region of Ontario.
"We are thrilled to welcome the Meritus team under the Tribe
umbrella as we expand our network of successful property management
service providers across the country," said Joseph Nakhla, CEO of Tribe. "This acquisition
marks a significant milestone for the Company, as we expand our
presence directly into the largest metropolitan area in
Canada, giving a boost to our
revenue and adding more than 5,000 homes under management."
The acquisition is a continuation of Tribe's strategy to
increase the Company's geographic footprint in Canada and beyond. The acquisition of Meritus
strengthens Tribe's national presence, now with 8 offices across
Canada – 5 in British Columbia, 1 in Alberta and 2 in Ontario, including the Company's new Meritus
office in greater Toronto.
"I have been looking for the right partner – a company that
shares similar goals of modernizing the property management
industry and improving the level of service we can all provide for
our clients with a focus on innovation, education and operational
efficiencies. Tribe was the obvious choice," said Meritus Group
Management Inc. Principal, Dean
McCabe.
Transaction Details:
In exchange for all the outstanding share capital of Meritus,
Tribe has paid a total of $1,000,000
in cash and common shares in the capital of the Company (each, a
"Share") to the existing shareholder of Meritus as follows:
- $50,000 in cash as an initial
deposit;
- $350,000 in cash subject to a
working capital adjustment noted below;
- 143,678 Shares at a deemed issue price $0.696 per Share and equal to $100,000; and
- $300,000 by way of promissory
note1.
The Company has also paid $200,000
in cash on closing as a working capital adjustment.
The Shares issued are subject to a statutory hold period of four
months and a day expiring on April 19,
2024, and a voluntary lock-up from which one-third will be
released every six months over an 18-month period.
The Company has agreed to increase the purchase price by
$175,500 payable in Shares at a
deemed issue price of $0.696 per
Share in the event certain future revenue targets are achieved.
No finder's fees were paid or payable in conjunction with this
transaction.
Having completed 12 acquisitions to date, Tribe has established
a successful track record of executing and integrating acquisitions
to further accelerate the Company's revenue growth.
About Meritus Group Management
Meritus was founded by Dean
McCabe in 2016, with the belief that condominium communities
can benefit from a management relationship that is built on trust
and respect earned through transparency, accuracy,
and reliability. Meritus generated over $2 million in revenues in its latest fiscal
year.
About Tribe Property Technologies
Tribe is a property technology company that is disrupting the
traditional property management industry. As a rapidly growing
tech-forward property management company, Tribe's integrated
service-technology delivery model serves the needs of a much wider
variety of stakeholders than traditional service providers. Tribe
seeks to acquire highly accretive targets in the fragmented North
American property management industry and transform these
businesses through streamlining and digitization of operations.
Tribe's platform decreases customer acquisition costs, increases
retention, and allows for the addition of value-added products and
services through the
platform. Visit tribetech.com for more
information.
ON BEHALF OF THE BOARD
"Joseph Nakhla"
Chief Executive Officer
Tribe Property Technologies Inc.
Joseph Nakhla
Chief Executive Officer
1606 – 1166 Alberni Street, Vancouver,
British Columbia
V6E 3Z3
Phone: (604) 343-2601
Email: joseph.nakhla@tribetech.com
Neither the TSX Venture Exchange 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 release.
Cautionary Statement on Forward-Looking
Information
This news release may contain certain "Forward-Looking
Statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws regarding the Company and its business. When
or if used in this news release, the words "anticipate", "believe",
"estimate", "expect", "target", "plan", "forecast", "may",
"schedule" and similar words or expressions identify
forward-looking statements or information. Forward-looking
statements or information in this news release may relate to
statements with operation and integration of Meritus; prospective
revenue growth; the aims and goals of the Company; financial
projections; growth plans including future prospective
consolidation in the rental management sector; future acquisitions
by the Company; beliefs of the Company with respect to the
independent owner-investors market; prospective benefits of the
Company's platform; and other factors or information. Such
statements represent the Company's current views with respect to
future events and are necessarily based upon several assumptions
and estimates that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political, and social risks, contingencies, and uncertainties. Many
factors, both known and unknown, could cause results, performance,
or achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied
by such forward- looking statements. The Company does not intend,
and do not assume any obligation, to update these forward-looking
statements or information to reflect changes in assumptions or
changes in circumstances or any other events affecting such
statements and information other than as required by applicable
laws, rules, and regulations.
_________________________________
|
1 The
promissory note will be secured against the assets of Meritus and
bear interest at a rate of 7% per annum on the unpaid principal and
will be due and payable over a three-year term.
|
SOURCE Tribe Property Technologies Inc.