SEB Acquires Stroma Service Consulting Inc.
June 11 2014 - 4:12PM
Marketwired
SEB Acquires Stroma Service Consulting Inc.
TORONTO, ONTARIO--(Marketwired - Jun 11, 2014) - Smart Employee
Benefits Inc. ("SEB") (TSX-VENTURE:SEB), is a technology company
providing "business processes software solutions and services" to
corporate and government clients with specialty practices focused
on "managing group benefit solutions and health claims processing
environments." SEB is pleased to announce that its wholly-owned
subsidiary, SOMOS Consulting Group Ltd. ("SOMOS"), has acquired
100% of Stroma Service Consulting Inc. ("Stroma"), a company
providing consulting services to various clients including the
Government of Ontario.
TRANSACTION TERMS: SOMOS acquired 100% of the shares of Stroma
for $650,000 in cash; $250,000 in promissory notes paying interest
at an annualized rate of 3% with annual principal repayments over a
3 year period and convertible into shares of SEB at $0.50, $0.60
and $0.70 per common share of SEB in years one, two and three,
respectively; and the issuance of 1,125,000 shares of SEB. In
connection with the transaction, 700,000 warrants were granted to
Mark Sherry, who will continue in his role as President of Stroma,
and 300,000 warrants, in the aggregate, were granted to other
employees of Stroma. The warrants have a four year term and are
exercisable at $0.50, $0.55, $0.60 and $0.70 per common share of
SEB in years one, two, three and four of the term,
respectively.
MANAGEMENT COMMENTS: States John McKimm, President/CEO/CIO of
SEB, "Stroma's deep ITIL experience and stellar references adds to
our growing Canadian presence, particularly in Ottawa and Toronto.
This acquisition is in line with our focus on deepening client
relationships in government and healthcare. Stroma has a history of
profitability and brings unique expertise that adds to the suite of
solutions and services that enhance SEB's healthcare and SOMOS
technology offerings to corporate and government sectors. Stroma
client references significantly enhance the SEB group's ability to
respond to business opportunities."
ABOUT STROMA: Stroma provides software, consulting, and training
services as an IT Service Management company. Stroma's client base
is in both Canada and the US. Significant clients include various
Canadian health ministries along with other government departments.
Stroma has completed a number of successful healthcare projects,
has relevant security clearances, many valuable corporate and
government project references and key vendor arrangements with both
corporate and government clients. Stroma's sales have historically
tracked in the $6.0 million to $7.0 million range.
ABOUT SEB: SEB is a technology company providing software,
solutions and services specializing in managing group benefit
solutions and healthcare claims processing environments for
corporate and government clients. Health Claims Processing alone is
a $60.0 plus billion industry, of which over $37.0 billion is
employee group benefit plans and over $25.0 billion of other
healthcare benefit claims (e. g. workers' compensation claims,
travel benefits, various federal and provincial government
programs, dental associations, drug associations, etc.). In the
employee group benefits industry, SEB operates as a Third Party
Administrator and Insurance Brokerage utilizing its software
platform to provide "totally hosted PCI compliant supply chain
solutions" for managing the complete group benefits business
processes between insurers, clients, brokers, consultants,
technology service providers and healthcare service providers. In
healthcare claims processing, SEB also operates as a systems
integrator utilizing its technology platform together with other
technologies to provide customized, fully integrated solutions for
specialized environments (e.g. travel claims, student benefits,
hospitals, unique government applications etc.). The technology and
expertise deployed in this area also allows SEB to provide other
related supply chain, systems integration and human resource
solutions and services to the same clients.
Forward-Looking Statements
This news release is intended for information purposes only.
Statements made in this news release may contain "forward looking"
information about the company's future business prospects. These
statements while expressed in good faith and believed to have a
reasonable basis are subject to risk and uncertainties that could
cause actual results to differ materially from those set forth or
implied by such forward looking statements. Investors should
consult a professional advisor before making any investment
decision.
For further information about SEB, please visit
www.seb-inc.com.
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.
MEDIA CONTACTS: Smart Employee Benefits Inc.John
McKimmPresident/Chief Executive Officer(416)
460-2817john.mckimm@seb-inc.comSmart Employee Benefits Inc.Shelly
FrankVice-President, Marketing(888) 939-8885 x
358shelly.frank@seb-inc.comwww.seb-inc.comFirst Canadian Capital
Corp.Dan Boase416-742-5600 or
1-866-580-8891dboase@firstcanadiancapital.comFirst Canadian Capital
Corp.Eric Balog416-742-5600 or
1-866-580-8891ebalog@firstcanadiancapital.com
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