Exciting Business Merger for DGL Investments No. 1 Inc.
DGL Investments No. 1 Inc. Proposes Major Business Merger
DGL Investments No. 1 Inc. (“DGL” or the “Company”) (TSXV: DGL.P) is thrilled to announce a significant development in its journey toward growth and innovation. The company is initiating a proposed arms-length Qualifying Transaction with two dynamic companies, Rep Group Limited and Perspectives Productions Limited, forging a new direction in the mental health and wellness sector.
Overview of Rep Group Limited and Perspectives Productions Limited
Founded in June 2020, Rep Group Limited specializes in developing unique solutions for mental health and wellbeing. Their flagship product, a narrative therapy app, empowers individuals to take charge of their mental health while providing organizations with valuable data to foster a positive culture of wellness. This innovative platform can revolutionize how companies engage with employees toward improving collective wellbeing.
The app is designed to equip individuals with the necessary tools to manage their mental health, offer expert-led insights for organizations striving to create a supportive culture, and facilitate connection among employees, which ultimately enhances performance and engagement.
Perspectives Productions Limited, established in early 2024, complements Rep Group’s mission with its cutting-edge Over-the-Top (OTT) platform that handles the distribution of vital mental health stories and training content. These resources are crucial for improving understanding and management of mental health challenges in professional environments. Perspectives has already secured patent protection for its innovative technology.
Details of the Proposed Transaction
On April 10, 2025, DGL signed a non-binding Letter of Intent with both Rep Group and Perspectives, setting the stage for a strategic merger. This Transaction aims to create a new entity, termed the Resulting Issuer, under which the businesses of both Targets will be integrated. The final structure of this merger will be determined with professional legal and financial guidance.
Upon completion, it is projected that current DGL shareholders will hold approximately 2,273,141 common shares in the Resulting Issuer, demonstrating a commitment to this transformative opportunity. The proposed merger will involve the issuance of roughly 13,638,844 common shares proportional to existing shareholders of the Targets, ensuring a fair transition for all parties involved.
Moreover, a financing round is anticipated to raise not less than GBP£1,000,000 (approximately CAD$1,800,000), which is essential for the successful closure of the Transaction. This financial backing will help establish the new company with the capital needed for future growth.
Importance of the Transaction
This proposed Transaction is identified as a Qualifying Transaction under the rules of the TSX Venture Exchange, which positions DGL for a road of opportunistic growth in the mental health sector. Shares of the Resulting Issuer will be priced based on DGL's closing stock price, adjusted for any necessary share consolidations, demonstrating the organized and thought-out nature of this venture.
Significantly, the Transaction complements the growing trend of integrating mental health initiatives within corporate culture, enhancing employee support systems while reinforcing organizational growth. As DGL moves toward this merger, it aims to capitalize on the rising demand for mental health resources in a professional setting.
Looking Forward
Upon successfully completing the proposed Transaction, the new entity is set to redefine its presence as a Tier 2 Technology Issuer, with a name reflecting the shared values of DGL, Rep Group, and Perspectives. Trading has been temporarily suspended as the proposal is finalized, but anticipations are high for a triumphant recommencement on the Exchange.
For investors and stakeholders, this development heralds a new chapter for DGL. The implications of combining these two forward-thinking companies could set a new standard in corporate mental health initiatives, paving the way for enhanced employee engagement and overall productivity.
Frequently Asked Questions
What is the primary goal of the proposed Transaction?
The main aim is to form a new entity by merging DGL with Rep Group and Perspectives, focused on enhancing mental health engagement in wellness programs.
What does DGL stand to gain from this merger?
DGL aims to leverage the expertise and technological advancements of the Targets to strengthen its position in the mental wellness industry.
How will the financing for the Transaction be structured?
The Transaction includes a financing component set to raise at least GBP£1,000,000, crucial for supporting the newly formed entity's operations.
When will trading for DGL resumes?
Trading is expected to resume once the Transaction is successfully completed and all necessary documentation is submitted to the Exchange.
How does this merger impact mental health initiatives?
The merger integrates advanced technologies and approaches to improve mental health resource accessibility and employee wellbeing within corporate settings.
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