Interfield Global Software Inc. (CBOE CA: IFSS) (the
“
Company”) is pleased to announce that it has
entered into a non-binding letter of intent (the
“
LOI”) on June 21, 2024 to enter a business
combination with JRL Energy Inc. (“
JRL”), a
privately held arm's length company (the
“
Transaction”). JRL is a full service provider and
processor of high-quality thermal and specialty coal, committed to
responsible energy transition.
Concurrently with or prior to closing of the
Transaction, JRL intends to complete a private placement to raise
gross proceeds of up to USD 15,000,000 (“JRL Private
Placement”). If the private placement occurs substantially
contemporaneous with the Transaction, the terms of the JRL Private
Placement including the number of shares and price per share shall
be determined in accordance with the policies of Cboe Canada Inc.
(“Cboe Canada”) and other applicable securities
regulators and shall be subject to approval of Cboe Canada and such
regulator, as applicable. There is no assurance that the JRL
Private Placement will be completed.
The Transaction
The Transaction will be completed by way of
share exchange, three-cornered amalgamation, merger, amalgamation,
arrangement or other similar structure which would result in the
Company (upon completion of the Transaction, referred to as the
“Resulting Issuer”) becoming the holding company
of JRL and the subsidiaries and affiliates of JRL becoming
subsidiaries and affiliates, as applicable, of the Resulting
Issuer. It is intended that following the Transaction, the common
shares of the Resulting Issuer (the “Resulting Issuer
Shares”) will be listed for trading on the Cboe Canada.
Upon completion of the Transaction, the security holders of common
stock of JRL will receive Resulting Issuer Shares in consideration
for common stock of JRL at an exchange ratio to be determined in
accordance with the valuations of each of JRL and the Company
prepared by independent third-party valuators. The parties shall
mutually discuss the treatment of other outstanding convertible
securities of JRL.
The final structure of the Transaction is
subject to tax, corporate and securities law advice that each of
the Company and JRL may receive.
Subject to satisfactory completion of customary
due diligence, the Company and JRL shall commence good faith
negotiations of a definitive merger, amalgamation or share exchange
agreement (the “Definitive Agreement”). The
Definitive Agreement will be subject to customary conditions
precedent for transactions of this nature. The Definitive Agreement
will also provide that: (a) a portion of the Resulting Issuer
Shares issued to securityholders of JRL may be subject to escrow
provisions imposed under the policies of Cboe Canada; and (b) that
any such escrowed Resulting Issuer Shares would, to the extent
required, be held in escrow and released, over time, as determined
by Cboe Canada.
Completion of the Transaction is subject to
several conditions including but not limited to (i) the completion
of customary due diligence; (ii) conditional acceptance of Cboe
Canada for listing of the Resulting Issuer Shares for trading on
Cboe Canada; (iii) closing of the JRL Private Placement; (iv) the
Resulting Issuer being a “foreign private issuer” as defined in
Rule 405 under the United States Securities Act of 1933 immediately
following the closing of the Transaction; (v) there being no
prohibition at law preventing the completion of the Transaction;
and (v) receipt of all required shareholder and regulatory
approvals, including the approval of Cboe Canada.
Strategic Alignment and
Synergies
The Transaction is expected to provide a number
of benefits, including but not limited to:
Complementary Strengths
JRL, with its robust industrial and mining
operations, has established itself as a key player in energy
production and resource extraction. The Company excels in
developing innovative software solutions tailored for industrial
applications. The Transaction is expected to leverage each
company's strengths, combining JRL's industry expertise with the
Company's technological prowess to create a more competitive and
innovative entity.
Enhanced Operational Efficiency
By integrating the Company's advanced software
solutions, JRL can streamline its operations, improve data
management, and enhance decision-making processes. This
technological integration is anticipated to lead to cost savings,
optimized resource allocation, and increased productivity across
JRL's mining and industrial operations.
Sustainable Growth
The combined expertise in energy production and
software development is expected to enable the Resulting Issuer to
innovate in areas such as renewable energy, smart mining, and
sustainable industrial practices. This focus on sustainability will
not only meet the growing demand for environmentally responsible
solutions but also anticipated to ensure long-term growth and
viability.
Expansion of Product and Service Offerings
The Transaction is expected allow JRL to
diversify its portfolio by incorporating the Company’s software
products and services. This diversification will not only open new
revenue streams but also provide JRL's existing customers with
comprehensive, end-to-end solutions that encompass both physical
and digital aspects of industrial operations.
Access to New Markets
The Company's established presence in the
technology sector and its customer base is expected to provide JRL
with immediate access to new markets and clients. Conversely, JRL's
extensive network in the industrial and mining sectors is expected
to create new opportunities for the Company to deploy its software
solutions, thereby expanding its market reach.
Innovation and Competitive Edge
The Transaction fosters a culture of innovation,
combining JRL's practical industry knowledge with the Company's
cutting-edge technological capabilities. This synergy will drive
the development of new products and services, positioning the
Resulting Issuer as a key player in both the energy and technology
sectors. The management believes that his competitive edge will be
crucial in navigating the rapidly evolving industrial
landscape.
Revenue Growth
The complementary nature of both companies'
offerings is expected to generate significant cross-selling
opportunities, driving revenue growth. The management believes that
the integrated solutions would attract a broader customer base
potentially boosting sales and market share.
Cost Synergies
The Transaction is expected to result in cost
efficiencies through the elimination of redundant functions,
streamlined operations, and consolidated procurement processes.
These synergies are expected to enhance the overall financial
performance of the Resulting Issuer, improving profitability and
shareholder value.
Hal Hemmerich, Chairman of the Company, said,
“The merger of JRL Energy Inc. and Interfield Global Software Inc.
presents a compelling strategic fit, combining industry expertise
with technological innovation to create a powerful entity poised
for growth and success. This merger will drive operational
efficiencies, expand market reach, and foster sustainable
development, ultimately delivering enhanced value to shareholders,
customers, and employees.”
About Interfield Global Software
Inc.
The Company is a publicly listed company, with
its common shares listed on Cboe Canada. (Cboe CA: IFSS) and
operates out of Dubai, U.A.E through its wholly owned subsidiary,
Interfield Software Solutions LLC (“Interfield
Solutions”).
Interfield Solutions is a software company that
services numerous industrial segments worldwide including oil and
gas, mining and renewables. Interfield Solutions has two operating
divisions, E-commerce and Software as a Service. Equipment Hound,
the company’s flagship product of its E-commerce division, is an
industrial equipment marketplace that connects buyers and suppliers
around the globe. Equipment Hound manages a catalogue of equipment
from various suppliers and provides procurement solutions for
buyers. It includes features such as requests for quotes, logistics
support and third-party verification. ToolSuite, the company’s
flagship product of its Software as a Service division, is a cloud
based data collection and management platform that digitizes
industrial processes and provides real-time auditable data for
clients.
For more information about the Company, please
refer to the Company's profile on SEDAR+ at www.sedarplus.ca.
About JRL Energy Inc.
JRL Energy Inc. is a full-service provider and
processor of high-quality thermal and specialty coal. JRL is a
modern visionary company with ESG and energy transition goals and
objectives. JRL Energy has multiple operating mines in Kentucky and
produces from both underground and open pit operations.
ON BEHALF OF THE BOARD OF DIRECTORS
“Harold Hemmerich”
Harold Hemmerich, Chief Executive Officer &
Director
Phone: +971 50 558 8349
Bruce Nurse, Investor Relations
Phone: +1 303 919 2913
Forward-Looking Statements Disclaimer
and Reader Advisory
This news release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. All statements, other than statements of historical
fact, included herein are forward-looking information. In
particular, this news release contains forward-looking information
regarding: the revocation of the FFCTO and trading of the
Company’s securities. There can be no assurance that such
forward-looking information will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such forward-looking information. This
forward-looking information reflects the Company’s current beliefs
and is based on information currently available to the Company and
on assumptions the Company believes are reasonable. These
assumptions include, but are not limited to the negotiation and
entry into a Definitive Agreement, closing of the JRL Private
Placement, obtaining all approvals, including regulatory approvals
required to complete the Transaction, the successful completion of
the Transaction and integration of the business of JRL in
connection therewith and the proposed expectations on strategic
alignment and synergies including expected revenue growth and cost
synergies. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information. Such risks and other
factors may include, but are not limited to: general business,
economic, competitive, political and social uncertainties; general
capital market conditions and market prices for securities; delay
or failure to receive board or regulatory approvals; the actual
results of future operations; competition; changes in legislation
affecting the Company; the timing and availability of external
financing on acceptable terms; long-term capital requirements and
future developments in the Company’s markets and the markets in
which it expects to compete; or loss of key individuals. A
description of additional risk factors that may cause actual
results to differ materially from forward-looking information can
be found in the Company’s disclosure documents on SEDAR+ at
www.sedarplus.com. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Readers are cautioned that the
foregoing list of factors is not exhaustive. Readers are further
cautioned not to place undue reliance on forward-looking
information as there can be no assurance that the plans,
intentions or expectations upon which they are placed will occur.
Forward-looking information contained in this news release is
expressly qualified by this cautionary statement. The
forward-looking information contained in this news release
represents the expectations of the Company as of the date of this
news release and, accordingly, is subject to change after such
date. However, the Company expressly disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or
otherwise, except as expressly required by applicable securities
law.
No securities regulatory authority has either
approved or disapproved the contents of this news release. Cboe
Canada Inc. does not accept responsibility for the adequacy or
accuracy of this news release.