REGINA, SK, Nov. 30, 2020 /CNW/ - Input Capital Corp. (TSXV:
INP) (US: INPCF) ("Input" or the "Company") is
pleased to announce that it has entered into a non-binding term
sheet (the "Term Sheet") with SRG Security Resource
Group Inc. ("SRG") outlining the principal terms and
conditions on which Input would be prepared to purchase 100% of the
common shares of SRG, a Canadian provider of cyber security and
physical protective security services (the "Proposed
Acquisition"). The Term Sheet has been accepted by SRG and a
majority group of shareholders holding approximately 78% of the
common shares of SRG. The Proposed Acquisition as contemplated by
the Term Sheet remains subject to, among other conditions, the
completion of due diligence to Input's satisfaction and the
negotiation and execution of a definitive share purchase agreement,
which is expected to contain customary covenants, representations,
warranties, indemnities and closing conditions, including the
approval of the TSX Venture Exchange.
Input will continue to operate its existing agriculture
operations for the foreseeable future. The average remaining term
of Input's streaming contracts with its many farm clients is 2-3
years. With canola prices nearing all-time highs, Input has an
excellent opportunity to maximize the value of its assets as the
Company repatriates capital from the agriculture sector over the
remaining life of these contracts. This is expected to put Input in
an excellent financial position to back SRG's anticipated growth
strategy in the security sector.
"The SRG security platform represents a unique opportunity to
acquire a 24-year-old, profitable, high-performing business that is
extremely well-positioned for its next stage of growth," said
Doug Emsley, Chairman & CEO of
Input. "By marrying Input's very strong balance sheet to SRG's
growth opportunities, we see an opportunity to create a thriving
player in the cyber and physical security services business. SRG's
founders have been in the security business since 1987. The entire
SRG management team is expected to remain with the company."
There can be no assurance that the Proposed Acquisition will
receive all required approvals, or be advanced on the terms
indicated in the Term Sheet, or at all. Full details of the
Proposed Acquisition will be made available once a definitive share
purchase agreement has been executed.
ABOUT INPUT
Input is an agriculture commodity streaming company with a focus
on canola, the largest and most profitable crop in Canadian
agriculture. Since 2012, the Company has developed several flexible
and competitive forms of financing which help western Canadian
canola farmers solve working capital, mortgage finance and canola
marketing challenges and improve the financial position of their
farms. Under a streaming contract, Input has provided capital in
exchange for a stream of canola via multi-year fixed-volume canola
purchase contracts. As of May 2019,
Input postponed capital deployment into new streaming contracts in
light of canola trade uncertainties with China and the effect of this uncertainty on
capital availability. For more information, please visit
www.inputcapital.com.
Forward Looking Statements
This release includes forward-looking statements regarding
Input and its business. Such statements are based on the current
expectations and views of future events of Input's management. In
some cases the forward-looking statements can be identified by
words or phrases such as "may", "will", "expect", "plan",
"anticipate", "intend", "potential", "estimate", "believe" or the
negative of these terms, or other similar expressions intended to
identify forward-looking statements. The forward-looking events and
circumstances discussed in this release may not occur and could
differ materially as a result of known and unknown risk factors and
uncertainties affecting Input, including risks regarding the
agricultural industry, economic factors and the equity markets
generally, an inability to negotiate and enter into the definitive
share purchase agreement, the Company's inability to consummate the
acquisition of SRG, non-satisfaction of the conditions to the
Proposed Acquisition (including the approval of the TSX Venture
Exchange and/or board approvals of the definitive agreement), risks
and uncertainties relating to Input's and SRG's businesses, and
many other factors beyond the control of Input (including the
ongoing COVID-19 pandemic). No forward-looking statement can be
guaranteed. Forward-looking statements and information by their
nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause our actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. Except
as required by applicable securities laws, forward-looking
statements speak only as of the date on which they are made and
Input undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
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.
SOURCE Input Capital Corp.