Zedcor Inc. Completes Sale of Rentals Segment Assets for $11.3 Million; Appointment of Chief Operating Officer
Calgary, Alberta--(Newsfile Corp. - June 30, 2021) - Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to announce that further to its press release dated May 27, 2021, it has completed the sale of its Rentals Segment assets to Maynbridge Capital Inc ("Maynbridge").
Gross cash proceeds from the transaction were $11.3 million. This amount will be applied against Zedcor's indebtedness to Maynbridge. As a result of the transaction, the Company's outstanding debt to Maynbridge, which excludes amounts drawn on the operating line of credit, is below $5.0 million. The Company's outstanding debt now represents less than two times EBITDA on a trailing twelve-month basis. As a result of the reduced leverage, Zedcor has been in discussions with its banking partners to secure additional equipment financing to expand its fleet of MobileyeZ security towers and continue growing its operations across Canada.
Appointment of Chief Operating Officer:
Zedcor is also pleased to announce the appointment of James Leganchuk as Chief Operating Officer effective July 1, 2021. Mr. Leganchuk has been with Zedcor since 2011, previously serving as VP Operations and VP Business Development. He has extensive industry knowledge of operations and industrial rental solutions; in addition, Mr. Leganchuk played an integral role in establishing Zedcor's centralized surveillance centre in Edmonton, Alberta and has helped to streamline operations and create efficiencies throughout the Company.
About Zedcor Inc.
Zedcor is a Canadian public corporation and parent company to Zedcor Security Solutions Corp. ("Zedcor Security Solutions"). Zedcor Security Solutions is engaged in the providing security & surveillance services throughout Canada. With its state-of-the-art 24/7 live, verified monitoring center located in Western Canada, the Company is able to provide cutting edge, technology-based security solutions to its customers across all industry segments. The Company trades on the TSX Venture Exchange under the symbol "ZDC".
Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information, including the application of proceeds of the sale of the Rentals Segment assets to indebtedness of the Company, amounts of debt, the Company's debt to EBITDA ratio and the Company having discussions to secure additional equipment financing to expand its fleet of MobileyeZ security towers and continue growing its operations across Canada. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "would have realized', "may have been" or similar words suggesting future outcomes or expectations. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the ability of the Company to obtain equipment financing and its ability to grow its operations across Canada. Additional information regarding some of these risks, uncertainties and other factors may be found in the Company's management's discussion and analysis for the three months ended March 31, 2021, and other documents available on the Company's profile at www.sedar.com. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. These assumptions include the availability of equipment financing and growth opportunities. Although management believes these assumptions are reasonable, there can be no assurance that they will prove to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.
Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Zedcor's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
This press release makes reference to certain non-GAAP measures. These measures are not recognized measures under International Financial Report Standards ("IFRS"), do not have a standardized meaning prescribed by IFRS. Investors are cautioned that EBITDA and adjusted EBITDA are not acceptable alternatives to net income, a measurement of liquidity, or comparable measures as determined in accordance with IFRS.
EBITDA refers to net income before finance costs, income taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with severance, gains and losses on sale of equipment and stock-based compensation. These measures do not have a standardized definition prescribed by IFRS and therefore may not be comparable to similar captioned terms presented by other issuers.
Management believes that EBITDA and Adjusted EBITDA are useful measures of performance as they eliminate non-recurring items and the impact of finance and tax structure variables that exist between entities. For further information regarding non-GAAP measures used by the Company, please refer to the management's discussion and analysis of the Company, copies of which are available on the Company's SEDAR profile at www.sedar.com.
For further information contact:
Chief Executive Officer
P: (403) 930-5430
Chief Financial Officer
P: (403) 930-5430
Neither 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/89203