"We are excited to announce the acquisition of our 8th manufacturing facility. Now is the time to move forward with a strategic acquisition that expands our reach into a new location as we continue to grow our national footprint," said Hadi Abassi, CEO, President and Founder of the Company. "LCF fits nicely into our overall, long term strategic plan and we are excited they have joined the AEP group of companies. The Company is currently reviewing a number of additional acquisition targets and will maintain a disciplined approach to acquiring new manufacturing facilities that fit our long-term goals."
This transaction is aligned with the Company's strategic acquisition plan and expands the Company's geographical reach, as well as growing its wall panel manufacturing expertise and capacity. In 2022, LCF generated over
The acquisition of LCF was completed effective
(a) | The issuance of 1,739,129 common shares in the capital of the Company (the "Consideration Shares") having a value of |
(b) | Payment of |
The purchase price for LCF is subject to additional post-closing adjustments based on LCF's working capital, inventory, cash and income taxes payable/receivable at closing. The Consideration Shares issued to former shareholders of LCF are subject to a hold period of four months plus one day from the closing date of the acquisition.
Certain financial measures in this news release do not have any standardized meaning under IFRS and, therefore are considered non-IFRS or non-GAAP measures. These non-IFRS measures are used by management to facilitate the analysis and comparison of period-to-period operating results for AEP and to assess whether AEP's operations are generating sufficient operating cash flow to fund working capital needs and to fund capital expenditures. As these non-IFRS measures do not have any standardized meaning under IFRS, these measures may not be comparable to similar measures presented by other issuers. The non-IFRS measures used in this news release may include "EBITDA", "EBITDA margin", "adjusted EBITDA", "adjusted EBITDA margin", "normalized EBITDA" and "normalized EBITDA margin". The description of the composition of these measures is incorporated by reference from AEP's Management's Discussion and Analysis for the period ended
AEP is a growth company that is acquiring and operating profitable, well-established operations in
FORWARD LOOKING INFORMATION
Information set forth in this news release contains forward-looking statements. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Although AEP believes that the expectations reflected in the forward looking statements are reasonable, there is no assurance that such expectations will prove to be correct, or that such future events will occur in the disclosed time frames or at all. AEP cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond AEP's control. Such factors include, among other things: Risks and uncertainties relating to AEP, including those to be described in the Management's Discussion and Analysis ("MD&A") for AEP's three months ended
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