Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) Corporation has told investors it remains committed to completing the previously announced acquisition of 2747524 Ontario Inc, operating as Cylix Data Group (Cylix), a business intelligence firm, by the end of 2021.
As reported in November, Xigem, on October 29, 2021, inked a binding letter of intent (LOI) to acquire the assets of Cylix Data in an all-stock deal valued at around C$32.4 million.
"Xigem and Cylix continue to progress towards the completion of closing conditions, including the receipt of regulatory approvals and the execution of definitive agreements," Xigem said in a brief statement.
"The company has been working diligently since the execution of the LOI to ensure the best possible value for all of its stakeholders and involved parties. The company anticipates and remains committed to completing the transaction before the end of this year," it added.
READ: Xigem Technologies inks letter of intent to acquire Cylix Data Group for C$32.4M in all-stock deal
Xigem powers technology for the near trillion-dollar remote economy that businesses around the globe are embracing in a post-coronavirus pandemic economy.
Its Software-as-a-Service (SaaS) technology platform, iAgent, provides organizations, businesses and consumers with the tools necessary to support remote working and learning.
Cylix, which has been operating for nearly three decades, has generated average annual revenues in excess of C$1.7 million and earnings before interest, taxes, and amortization (EBITDA) of over C$800,000.
Last month, Xigem said that Cylix, following the integration of Xigem's iAgent CRM platform and FOOi payment app, will compile comprehensive customer information to assist in allocating resources while also mitigating fraud risk in payment transactions.
The C$32.4 million purchase price will be satisfied by the issue of 64.7 million Xigem units at a deemed price of $0.50 per purchaser unit, with each purchaser unit comprised of one common share of the company and 1/7 of one common share purchase warrant. Each whole warrant entitles the holder to acquire one further Xigem share at $0.60 for 24 months.
Xigem also said it will appoint a nominee of Cylix to its board of directors, and will also appoint another nominee of Cylix as an observer to its board of directors. It added that principals of Cylix will maintain an active role in the business and will provide a cash investment of $500,000 into Cylix upon closing of the transaction to fund the completion of the development of its next-generation technology.
Contact the author at giles@proactiveinvestors.com