/NOT FOR DISTRIBUTION IN THE U.S. OR
TO U.S. NEWSWIRE SERVICES./
- Tribe has entered into an agreement to acquire
property management firm, Meritus Group Management Inc., which
expands Tribe's footprint in the Province of Ontario.
- This acquisition is expected to add over 5,000
additional homes under management for Tribe
VANCOUVER, BC, Aug. 29,
2023 /CNW/ - Tribe Property Technologies Inc.
(TSXV:TRBE) (OTCQB US: TRPTF) ("Tribe" or the "Company") is pleased
to announce that it has agreed to acquire Meritus Group Management
Inc. ("Meritus"), an arm's-length party, strengthening Tribe's
presence in the greater Toronto
region of Ontario. The companies
signed the share purchase agreement (the "Agreement") for
this transaction August 29, 2023.
"We look forward to welcoming the Meritus team and their
experience managing condominium properties in the Greater Toronto Area," said Joseph Nakhla, CEO of Tribe. "Meritus expands
our management presence directly into Toronto where we have developed many real
estate developer relationships through our pre and post
construction software. This move allows us to package our entire
solution of construction software, property management software,
property management services and digital marketplace for homeowners
and residents for the thousands of managed communities in greater
Toronto."
The acquisition is a continuation of Tribe's strategy of
identifying operational opportunities and continuing to expand the
Company's national footprint and digital services. Meritus
has over 5,000 homes under management. This acquisition
strengthens Tribe's national presence, now with 8 offices across
Canada – 5 in British Columbia, 1 in Alberta and 2 in Ontario, including the Company's new Meritus
office in greater Toronto.
"Our team is excited to be joining a like-minded company with
shared values of innovation, industry education and operational
efficiencies as key to modernizing the property management industry
and improving the level of service we can all provide for our
clients," said Meritus Group Management Inc. Principal,
Dean McCabe.
Transaction Details:
In exchange for all the outstanding share capital of Meritus,
Tribe has agreed to pay $1,000,000 to
the existing shareholders of Meritus Group Management Inc., payable
as follows:
- $50,000 payable in cash within
five (5) days of execution of the Agreement;
- $450,000 payable in cash on
Closing, subject to adjustments;
- $200,000 payable in common shares
of Tribe; and
- $300,000 payable by promissory
note to be executed and delivered on Closing.
The issue price of the shares will be equal to the twenty-day
weighted average closing price immediately prior to completion of
the acquisition. All Consideration Shares issued will be
subject to a voluntary lock-up from which one-third of the
Consideration Shares will be released every six months for a period
of eighteen months.
The Note evidencing the Vendor Financing shall bear interest of
7% per annum, with interest payable on the 1st day of
each month commencing November 1,
2023. The principal shall be paid in equal annual instalments
with one third payable commencing October
2, 2024. The Vendor Financing shall be secured against
the assets of Meritus.
Closing is expected at the end of September 2023 and is subject to receipt of TSX
Venture Exchange approval and satisfaction of customary conditions
and documentation. It is anticipated that Meritus will
continue to operate independently until mid-2024 at which time,
Meritus principal Dean McCabe and
the rest of the Meritus team will formally join Tribe. Dean McCabe will continue to lead Meritus.
No finder's fees were paid or payable in conjunction with this
transaction.
About Meritus Group
Management
Meritus Group Management Inc. was founded by Dean McCabe in 2016, with the belief that
condominium communities can benefit from a management relationship
that is built on trust and respect earned
through transparency, accuracy, and reliability.
Meritus generated over $2
million in revenues in its latest fiscal year.
About Tribe Property
Technologies
Tribe is a property technology company that is disrupting the
traditional property management industry. As a rapidly growing
tech-forward property management company, Tribe's integrated
service-technology delivery model serves the needs of a much wider
variety of stakeholders than traditional service providers. Tribe
seeks to acquire highly accretive targets in the fragmented North
American property management industry and transform these
businesses through streamlining and digitization of operations.
Tribe's platform decreases customer acquisition costs, increases
retention, and allows for the addition of value-added products and
services through the
platform. Visit tribetech.com for more
information.
ON BEHALF OF THE BOARD
"Joseph Nakhla"
Chief Executive Officer
Tribe Property Technologies Inc.
Joseph Nakhla
Chief Executive Officer
1606 – 1166 Alberni Street, Vancouver,
British Columbia
V6E 3Z3
Phone: (604) 343-2601
Email: joseph.nakhla@tribetech.com
Neither the 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.
Cautionary Statement on
Forward-Looking Information
This news release may contain certain "Forward-Looking
Statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws regarding the Company and its business. When
or if used in this news release, the words "anticipate", "believe",
"estimate", "expect", "target", "plan", "forecast", "may",
"schedule" and similar words or expressions identify
forward-looking statements or information. Forward-looking
statements or information in this news release may relate to
statements with respect to the acquisition of Meritus Group
Management Inc. and closing thereof; the aims and goals of
the Company; financial projections; growth plans including future
prospective consolidation in the rental management sector; future
acquisitions by the Company; the completion of this transaction;
beliefs of the Company with respect to the independent
owner-investors market; prospective benefits of the Company's
platform; and other factors or information. Such statements
represent the Company's current views with respect to future events
and are necessarily based upon several assumptions and estimates
that, while considered reasonable by the Company, are inherently
subject to significant business, economic, competitive, political,
and social risks, contingencies, and uncertainties. Many factors,
both known and unknown, could cause results, performance, or
achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied
by such forward- looking statements. The Company does not intend,
and do not assume any obligation, to update these forward-looking
statements or information to reflect changes in assumptions or
changes in circumstances or any other events affecting such
statements and information other than as required by applicable
laws, rules, and regulations.
SOURCE Tribe Property Technologies Inc.