VANCOUVER, British Columbia, March 09, 2021 (GLOBE NEWSWIRE) -- GVIC Communications Corp. (“GVIC” or the “Company) announced today that it has entered into an agreement to sell its JWN Energy information business (“JWN”) to geoLOGIC systems ltd. (“geoLOGIC”) for $4.5 million in cash at closing plus an earn-out of up to $3.5 million payable over three years, for a total of up to $8.0 million (the “Transaction”). The earn-out is based on revenue performance.
geoLOGIC is an energy information business based in Calgary. It is significantly larger than JWN and is backed by BV Investment Partners, a large global private equity firm. geoLOGIC brings synergies to JWN through its data and software products, sales and development resources that can be leveraged to improve JWN’s products and performance, and potentially result in the realization of the earn-out proceeds.
JWN Energy operates in the Canadian oil & gas sector. The industry has been significantly challenged, and while it is expected to recover to some degree, GVIC determined that this segment of the Company’s business would be better served and positioned to realize its potential by combining with geoLOGIC. The upfront capital and potential earn-out proceeds can be used to invest in the Company’s core growth opportunities.
The Transaction remains subject to customary closing conditions and is expected to close on or about March 12, 2021.
Shares in GVIC are traded on the Toronto Stock Exchange under the symbol GCT.
For further information please contact Mr. Orest Smysnuik, Chief Financial Officer, at 604-708-3264.
ABOUT THE COMPANY
GVIC Communications Corp. is an information & marketing solutions company pursuing growth in sectors where the provision of essential information and related services provides high customer utility and value. The Company’s products and services are focused in two areas: 1) data, analytics and intelligence; and 2) content & marketing solutions.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements that relate to, among other things, the Company’s objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates. These forward-looking statements include, among other things, statements relating to our expectations regarding the terms of and the completion of the Transaction. These forward-looking statements are based on certain assumptions, including the satisfaction of the conditions precedent to the completion of the Transaction, which are subject to risks, uncertainties and other factors which may cause results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, and undue reliance should not be placed on such statements.
Important factors that could cause actual results to differ materially from these expectations include failure to satisfy the conditions precedent to the completion of the Transaction, the future financial performance of the RIG Energy Assets and the other risk factors listed in our Annual Information Form under the heading “Risk Factors” and in our MD&A under the heading “Business Environment and Risks”, many of which are out of our control. These other risk factors include, but are not limited to, the impact of Coronavirus, that future cash flow from operations and the availability under existing banking arrangements are believed to be adequate to support financial liabilities and that the Company expects to be successful in its objection with CRA, the ability of the Company to sell advertising and subscriptions related to its publications, foreign exchange rate fluctuations, the seasonal and cyclical nature of the agricultural and energy sectors, discontinuation of government grants, general market conditions in both Canada and the United States, changes in the prices of purchased supplies including newsprint, the effects of competition in the Company’s markets, dependence on key personnel, integration of newly acquired businesses, technological changes, tax risk, financing risk, debt service risk and cybersecurity risk.
The forward-looking statements made in this news release relate only to events or information as of the date on which the statements are made. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.