VANCOUVER, BC, March 10, 2021 /CNW/ - LITE ACCESS
TECHNOLOGIES INC. (the "Company") (TSXV: LTE) (OTC PINK:
LTCCF) is pleased to announce that it has completed its
acquisition of AMEC Cutting & Coring Limited, a British Columbia based company that carries on
the business of concrete cutting, coring and fibre installation
("AMEC"), pursuant to the terms of a share purchase agreement dated
March 5, 2021 (the "Agreement") among
the Company, Lite Access Technologies Canada Inc., a wholly owned
subsidiary of the Company, ("LTE Canada"), AMEC and Ante
(Tony) Curkovic. AMEC is based
out of Langley, British Columbia,
offering a wide range of services including concrete/ asphalt
cutting, coring, and fiber optic cable installation, pulling,
splicing and testing.
Highlights of the Transaction:
- Immediate synergy of companies resulting in expected
substantial cost savings through consolidation of equipment,
offices and personnel
- AMEC facility large enough to consolidate all personnel and
equipment into one location
- Broader service offerings with existing customers throughout
B.C.
- Expanded customer base
- Value of acquisition dependent on future performance – no
common shares will be issued, and no upfront cash
- Inherit net positive balance sheet
"With our focus now on Canada,
we are thrilled with the completion of the acquisition of AMEC
Cutting and Coring," said Carlo
Shimoon, President & CEO of Lite Access. "We welcome all
of the AMEC staff to the growing Lite Access Technologies family –
especially the founder of AMEC, Tony
Curkovic, as our new GM of Canadian operations. The
resulting expected significant cost savings through economies of
scale along with the expected boost in top line revenue due to a
wider customer base and service offerings, will yield a much more
robust and resilient Canadian business. Our plan will be to
accelerate our growth through subsequent acquisitions in the
quarters ahead."
Tony Curkovic, General Manager of
Lite Access Canada, stated, "The team at AMEC is excited to join
the Lite Access organization. As GM of the Canadian
operations, I will use my 25 years of construction experience
working onsite to expedite our growth and path to profitability by
optimizing execution in the field and by implementing robust
structure and procedures. Mr. Curkovic concluded, "AMEC has
worked for Lite Access as a subcontractor for years, and more
recently with Carlo the past year on the combined company's
direction, and we look forward to working with the entire Lite
Access team. With a substantial backlog of work between
us and a steady flow of projects on the horizon, the timing is
perfect to consolidate our resources and build a solid
foundation."
Terms of Transaction
Under the terms set forth in the Agreement, LTE Canada, being a
wholly owned subsidiary of the Company, will acquire all of the
issued and outstanding shares of AMEC from Tony Curkovic. In consideration of which,
LTE Canada will pay $500,000 to Mr.
Curkovic on the first anniversary of closing of the
transaction. Mr. Curkovic will also be entitled to the
following earnout payments (the "Earn-Out Payments"): (i) 10% of
annual EBITDA of LTE Canada and AMEC for 31 months after closing
date; and (ii) 5% of the annual EBITDA of LTE Canada and AMEC for
an additional 36 months. For a period of three years
following closing of the transaction, LTE Canada, at its sole
option, will have the right to make a one-time payment of
$500,000 to satisfy all Earn-Out
Payments.
Concurrent with closing, Mr. Curkovic was retained as General
Manager of LTE Canada, reporting to the CEO and granted 500,000
options with an exercise price of $0.29 per share for a period of five years from
the date of grant, subject to certain vesting requirements.
About Lite Access
Lite Access Technologies Inc. is a world leader in the use of
innovative and proven micro/narrow trenching technologies,
alternate methods of deployment and specialist products which
transform the cost the network deployment for telecommunications
operators.
As part of its suite of services Lite Access provides clients
with integrated solutions or select components for the design and
implementation of fibre optic networks. Lite Access' products
have been deployed in many high-profile communication networks
including Olympic facilities, military and government, numerous
communities throughout the United
Kingdom, the USA and
Canada as well as global
telecommunications companies that have adopted Lite Access as the
"solution of choice" for the least invasive, most cost effective
and future-proof fibre optic connectivity available.
Lite Access' installation technology and proprietary products
extend a network provider's ability to deliver true broadband
connectivity directly to end-users, such as homes, businesses,
government and educational institutions, and emergency response
facilities. Lite Access remains flexible and innovative in its
commitment to provide global clients and partners with the most
cost effective and proven fibre connectivity solutions
available.
*Non-IFRS Measures - EBITDA
EBITDA is a measure not recognized under IFRS. However,
management of Lite Access believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. EBITDA is defined as earnings before interest income,
taxes, depreciation and amortization, stock based compensation,
restructuring costs, impairment charges and other non-recurring
gains or losses. Management believes EBITDA is a useful measure
that facilitates period-to-period operating comparisons.
EBITDA does not have any standardized meanings prescribed by
IFRS and therefore may not be comparable to similar measures
presented by other issuers. Readers are cautioned that EBITDA is
not an alternative to measures determined in accordance with IFRS
and should not, on its own, be construed as indicators of
performance, cash flow or profitability.
Forward Looking Information
This news release contains statements that, to the extent
they are not recitations of historical fact, may constitute
"forward-looking statements" within the meaning of applicable
Canadian securities laws. Lite Access uses words such as "may",
"would", "could", "will", "likely", "expect", "believe", "intend"
and similar expressions to identify forward-looking statements. Any
such forward-looking statements are based on assumptions and
analyses made by Lite Access in light of its experience and its
perception of historical trends, current conditions and expected
future developments. However, whether actual results and
developments will conform to Lite Access' expectations and
predictions is subject to any number of risks, assumptions and
uncertainties. Many factors could cause Lite Access' actual
results to differ materially from those expressed or implied by the
forward-looking statements contained in this news release. Such
factors include, among other things: and risks and uncertainties
described in Lite Access's most recent Management Discussion &
Analysis (MD&A) for the period ended September 30, 2020 which can be accessed at
www.sedar.com. The "forward-looking statements" contained herein
speak only as of the date of this press release and, unless
required by applicable law, Lite Access undertakes no obligation to
publicly update or revise such information, whether as a result of
new information, future events or otherwise.
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.
SOURCE Lite Access Technologies Inc