Sale of Initio Medical Group Inc.
VANCOUVER, British Columbia, June 05, 2020 (GLOBE NEWSWIRE) -- Premier Diversified Holdings Inc. ("Premier" or the "Company") (PDH.V) announces that it has entered into a share purchase agreement dated June 2, 2020 with a privately-held numbered company incorporated in Ontario (the "Buyer") for the sale of all of the issued and outstanding shares of Initio Medical Group Inc. ("Initio").
Initio is a wholly-owned subsidiary of Premier which provides medical diagnostic scans at a clinic situated in Burnaby, B.C. Premier is selling its entire interest in Initio for a purchase price of $200,000. The buyer is a privately-held Ontario company which is not a Non-Arm's Length Party of the Issuer.
Initio is currently operating at a loss and has experienced a sharp decline in business during restrictions related to the novel coronavirus pandemic. The President of Premier, Sanjeev Parsad, commented as follows, "Our goal has always been to provide British Columbians with the choice to obtain a PET/CT scan at Initio, a private PET/CT facility. At this time, we are not in a position to continue operations of Initio. We feel the best way forward for the Initio staff and for the patient community in B.C. is to sell Initio to a buyer who can carry on the business. We wish to see Initio succeed and wish the new team well in its future endeavours."
In connection with the transaction, all of the current directors of Initio will resign. Additionally, the CEO, Dr. Simon Sutcliffe, will resign, as well as the CFO and Corporate Secretary.
No finder's fees are payable in connection with the transaction. The transaction is subject to approval by the TSX Venture Exchange.
About Premier Diversified Holdings Inc.
Premier Diversified Holdings Inc. participates in diversified industries through its acquisitions of securities and/or assets of public and private entities which it believes have potential for significant returns. It may act as a holding company (either directly or through a subsidiary) and may participate in management of subsidiary entities to varying degrees.
On behalf of the Board of Directors
President, CEO and Director
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.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdictions in which such offer, solicitation or sale would be unlawful. Any offering made will be pursuant to available prospectus exemptions and restricted to persons to whom the securities may be sold in accordance with the laws of such jurisdictions, and by persons permitted to sell the securities in accordance with the laws of such jurisdictions.
Further information regarding the Company can be found on SEDAR at www.sedar.com.
Not for dissemination in the United States of America.
Legal Notice Regarding Forward Looking Statements: This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that the share sale transaction will conclude on the terms and as set out in the transaction agreements and in this news release. Factors that could cause actual results to be materially different include but are not limited to the following: that additional complications or unforeseen obstacles from COVID-19 may negatively impact the transaction, that the transaction will proceed as contemplated or at all. Investors are cautioned against placing undue reliance on forward-looking statements. It is not our policy to update forward looking statements.
For further information, contact:
Sanjeev Parsad, President and CEO
Phone: (604) 678.9115
Fax: (604) 678.9279