Premier Diversified Holdings Inc. Announces Sale of Initio Medical Group Inc.
06 June 2020 - 4:29AM
Premier Diversified Holdings Inc. ("
Premier" or
the "
Company") (TSXV: PDH) 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
"Sanjeev Parsad"
Sanjeev Parsad 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
E-mail: sparsad@pdh-inc.com
Web: www.pdh-inc.com
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