TORONTO, ON / ACCESSWIRE / March 13, 2023 / HIRE Technologies Inc. (TSXV:HIRE.V)(OTCQB:HIRRF) ("HIRE" or the "Company"), a company focused on modernizing and digitizing human resources solutions, announces that it has entered into a definitive agreement to sell select assets from its Headhunters business unit (the "Transaction") to the vendors from whom HIRE originally purchased The Headhunters Recruitment Inc. ("THH") in September 2021. Upon closing of this Transaction, HIRE will extinguish a 2022 capital commitment of $4.7 million, and following closing HIRE expects to record a gain on sale in the first quarter of 2023.
The purchasers of the assets in the Transaction (the "Purchasers") are to acquire rights to The Headhunters trademark and domain name, email accounts, and website and are released from their non-compete agreements with THH and the Company. The Purchasers will also offer to continue employment for all the employees of the business. The Purchasers will pay a nominal cash amount as purchase price for the assets and will assume certain specified liabilities of the business. In connection with closing, the Purchasers and HIRE will enter into a mutual release agreement relating to claims the parties have under the original THH Share Purchase Agreement dated September 2021 (the "THH Share Purchase Agreement"). A gain on sale will be recorded in Q1-2023 along with an estimated reduction to current liabilities of $4.7 million in contingent consideration that was owed to the Purchasers in connection with the THH Share Purchase Agreement; release of this $4.7 million liability forms part of the mutual release. In connection with the Transaction, the Company has agreed to issue to the Purchasers an unsecured three-year term 8% promissory note with an estimated principal amount of approximately $300k, in partial satisfaction for the mutual release of claims under the THH Share Purchase Agreement.
The Transaction has been conditionally approved by certain secured lenders of the Company and is subject to other customary closing conditions. The Transaction is an Exempt Disposition as defined in the policies of the TSX Venture Exchange.
About HIRE Technologies Inc.
HIRE is a growing capital allocator that is rapidly establishing itself as a market leader in workforce management and staffing. HIRE's mission is to create a world-class portfolio of brands that will define the future of human resources through synergies, scale, and reach. The Company has extensive experience in building and growing staffing and executive search companies and is supported by a large recurring revenue base and a highly scalable shared services platform. This structure enables HIRE to create value for partners and shareholders. For more 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 HIRE expects or anticipates will, or may, occur in the future, including statements about: the closing of the Transaction, and the expected benefits thereof; and the expectation that HIRE will record a gain on the sale in Q1 of 2023; 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 HIRE believes that the assumptions made and the expectations represented by such statements are reasonable, including the continued favourable market conditions, 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 HIRE 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 HIRE 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. HIRE 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.