Finalized Acquisition Solidifies
Company's Position as Industry Leader
TORONTO, May 4, 2022
/CNW/ - Eddy Smart Home Solutions Ltd. ("Eddy") (TSXV: EDY)
announced today the successful closing of the previously announced
acquisition on March 25, 2022 of all
of the issued and outstanding common shares of Reed Controls Inc.
(dba Reed Water) ("Reed").
The total purchase price for the Transaction was C$7,359,600. The purchase price was paid in
common shares of Eddy at a per share price of $0.60 per share, with 12,266,000 shares being
issued (the "Share Consideration"). The Share Consideration
is subject to a twenty-four (24) month lock-up period, provided
that the Share Consideration will be released from the lock-up
requirements on the first business day following each of the four,
six, nine, twelve, fifteen, eighteen and twenty-one month
anniversaries of the closing date, and such other terms, as may be
imposed by the TSXV. The Share Consideration will also be subject
to a statutory four month hold period.
Reed developed a robust water management technology platform of
hardware & cloud software to manage water related risk,
conserve water & accelerate IoT adoption among global plumbing
manufacturers. Together with Eddy, the technology will
further enhance the solutions, creating a unified view of the
entire water infrastructure in commercial & high-rise
buildings. As a result of the Transaction, Eddy is positioned for
substantial growth in Canada and
the US, providing water control and leak mitigation services to
property owners and insurance providers.
Eddy's leadership team welcomes Reed founders Avi Yurman, Head of Product, and Adam Bartman, Solutions Architect, and Chief
Marketing Officer Avishai Moscovich. Reed was also granted a
right to nominate a director to serve on Eddy's board of directors
(the "Board"), and Avi Yurman
is appointed as a Board observer.
"We are thrilled to welcome the Reed team to Eddy," said
Travis Allan, CEO & President of
Eddy Solutions. "With their focus on commercial solutions,
and in particular, their foothold in the engineering space, Reed
folds nicely into Eddy's strategic focus, setting us all up for
incredible growth in this industry. Together, we have created an
unstoppable force in smart water protection."
"Our mantra is to provide connected devices that enhance
insights and intelligence into water," noted Avi Yurman, Co-founder of Reed. "Joining with
Eddy enriches our product suite and offerings, setting the stage
for substantial growth together."
About Eddy
Eddy is a North American provider and developer of residential
and commercial smart water metering products and monitoring
services, helping property owners protect, control, and conserve
water usage by combining water sensing devices with behavioural
learning software. For more details on Eddy's products or company
information, please visit eddysolutions.com.
Cautionary notice
Investors are cautioned that any information released or
received with respect to the transactions described herein may not
be accurate or complete and should not be relied upon. Trading in
the securities of the Company should be considered highly
speculative.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Notice regarding
forward-looking statements
This press release may contain certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable Canadian securities legislation, that are
not based on historical fact, including without limitation
statements containing the words "believes", "anticipates", "plans",
"intends", "will", "should", "expects", "continue", "estimate",
"forecasts" and other similar expressions. Forward-looking
information in this press release incudes statements with respect
to Eddy's ability to complete the Transaction on the terms and
timing described herein, or at all; the ability of Eddy to obtain
the necessary approval of the TSXV; the proposed Board nominee of
Reed; and the anticipated effects of the completion of the
Transaction on Eddy and its strategic direction. Readers are
cautioned to not place undue reliance on forward-looking
information. Actual results and developments may differ materially
from those contemplated by these statements. The Company undertakes
no obligation to comment on analyses, expectations or statements
made by third-parties in respect of the Company, its securities, or
financial or operating results (as applicable). Although the
Company believes that the expectations reflected in forward-looking
information in this press release are reasonable, such
forward-looking information has been based on expectations, factors
and assumptions concerning future events which may prove to be
inaccurate and are subject to numerous risks and uncertainties,
certain of which are beyond the Company's control, including: the
risk that Eddy and Reed are unable to complete the Transaction on
the terms and timing described herein, or at all; Eddy's inability
to obtain approval from the TSXV; the Transaction not having the
anticipated beneficial effects on Eddy and its strategic direction;
and the risk factors discussed in the Company's filing statement
which are incorporated herein by reference and are available
through SEDAR at www.sedar.com. The forward-looking information
contained in this press release are expressly qualified by this
cautionary statement and are made as of the date hereof. The
Company disclaims any intention and has no obligation or
responsibility, except as required by law, to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
SOURCE Eddy Smart Home Solutions Ltd.