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.”
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.
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.
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.