CanaDream announces the purchase of the RV Rental Operations of Westcoast Mountain Camper
CanaDream Corporation (TSX VENTURE:CDN) recently announced it has acquired the RV Rental Operations of Westcoast Mountain Campers Ltd. ("Westcoast"), a Western Canada competitor with RV rental operations in Vancouver and Calgary.
CanaDream Corporation ("CanaDream") is pleased to announce the strategic acquisition through its wholly owned subsidiary, CanaDream Inc., of substantially all of the assets and business (the "Purchased Assets") of Westcoast for an aggregate purchase price of $1.58 million (the "Purchase Price"). The Purchase Price is comprised of approximately $1.38 million payable in cash, subject to a holdback for fleet repair adjustments and commission on confirmed sales, and 266,667 CanaDream common shares issued from treasury at a deemed price of $0.75 per common share. All of the common shares issued to the Vendor as partial consideration for the Purchased Assets shall be subject to a four month hold period.
The Purchased Assets include Westcoast's fleet, 2015 booked sales receivables, assignable contract rights, business records, proprietary software, intellectual property (including trademarks, websites, logos, etc.), other fixed assets, goodwill and other intangible property. Westcoast's founder and CEO, Gord Rees, has agreed to a five year non-competition and non-solicitation agreement and to enter into a two year consulting agreement with CanaDream Inc. Mr. Rees will also be granted 175,000 stock options exercisable at $0.60 into CanaDream common shares. The options shall vest at the end of the two year consulting term and shall expire five years after grant.
Westcoast has been promoting Canadian Tourism by offering RV rentals from Calgary, Alberta and Vancouver, BC for 35 years. Mr. Rees is one of the original founders of Westcoast and has owned (together with his holding company) all of Westcoast's outstanding shares for the last twenty years. Mr. Rees is a well-respected leader in both the Canadian Tourism and RV Rental Industry and was instrumental in the establishment of the RV Rental Association of Canada in 2002, serving 4 years as President, and continues to serve as a board member of the association, which represents 2,500 rental units in Western Canada.
"We are pleased to welcome Gord to CanaDream. He brings years of experience and knowledge of the RV Rental Industry that will help build CanaDream's brand and shareholder value" said Brian Gronberg, CEO. We look forward to serving Westcoast's guests and providing them with the opportunity to experience Canada at their own pace, as guests of CanaDream.
This transaction is subject to the submission of final documentation and final approval of the TSX.