Puget Technologies Signs Letter of Intent to Acquire D & D Rehab Center, Inc.
Boca Raton, Florida--(Newsfile Corp. - August 11, 2021) - Puget Technologies, Inc. (OTC PINK: PUGE) ("Puget"), a Nevada corporation subject to reporting pursuant to Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended, announces today that it has entered into a letter of intent to acquire D & D Rehab Center, Inc., ("D & D") based in Hialeah, Florida. D & D, organized in February of 2010, is a health care provider that provides applied behavior analysis in the home environment to children who have conditions on the autism spectrum, among others. Additionally, through occupational, speech, and physical therapists available at its center, D & D provides rehabilitative services to individuals disabled by disease or injury to help them attain their maximum functional capacity.
As proposed, Puget would acquire D & D in two stages, first, a 50% interest in exchange for $1,500,000 in cash equivalents and $1,500,000 in unregistered shares of Puget's Class B Convertible Preferred Stock, $0.001 par value, and second, with an option to acquire the balance of D & D's securities at the same price and comparable terms within one year after the initial closing, although it is anticipated that Puget would exercise such option considerably sooner. D & D's total revenues (unaudited) for the calendar years ended December 31, 2019 and 2020 were $3,595,291 and o $3,635,240, respectively, with profits of $221,252 and $252,242, and D & D anticipates income of approximately $5,000,000 for calendar 2021 with anticipated profits of $1,000,000. Pursuant to applicable securities laws requirements, D & D's financial statements must be audited within 74 days after final closing. The parties intend to enter into a binding agreement following due diligence, legal consultations, and regulatory approvals with a potential closing by the end of the 2021 calendar year.
Hermann Burckhardt, CEO of Puget, indicated that, "This business will provide us with an outstanding opportunity to continue with our acquisition strategy, deepening our reach in the public health care industry. D & D will be able to access the capital and resources it needs for growth by associating with a company that is publicly traded and that brings valuable management expertise to the table."
Puget expects to fund the acquisition through a second stage private placement. In addition to the Puget shares received by the former D & D equity holders, during the initial two years following the proposed acquisition, the D & D subsidiary would be entitled to receive up to an additional $100,000 in Puget Common Stock, $0.001 par value, based on attaining net pre-tax profit performance goals, currently envisioned to be $2,000,000 for the calendar year ended December 31, 2022, and $3,000,000 for the calendar year ended December 31, 2023.
Alexei Carbonell, President and Director of D & D, commented, "We're thrilled to be making plans with a partner like Puget - they have the expertise we need to help us deliver more rehab services to a larger group of customers by expanding throughout Florida and beyond."
About Puget Technologies, Inc.
Puget Technologies, Inc. (pugettechnologies.com) aspires to evolve into an innovation-focused holding company operating through a group of subsidiaries and business units that work together to empower ground-breaking companies to reach their next stage of growth. With a strategy that combines acquisitions, strategic investment strategies, and operational support, Puget intends to provide a one-stop shop for growing companies who need access to both capital and growth resources, while enabling Puget and its stockholders to generate synergies and derive profit through pooled resources and shared goals. Puget's proposed investment focus ranges from traditional industries like health care that are ripe for business model innovation to new markets that strive to solve big societal problems such as climate change. Puget is publicly traded on the Pink Open Market under the ticker symbol "PUGE" and is headquartered in Boca Raton, Florida.
Any statements made in this press release that are not statements of historical fact, including statements about Puget's beliefs and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements can be identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "will" or, in each case, their negative, or other variations or comparable terminology. Puget bases these forward-looking statements or projections on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although Puget believes that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect Puget's actual results to differ materially from those expressed in the forward-looking statements and projections. Puget undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If Puget does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.
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