TORONTO, Oct. 23, 2017 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (TSXV:XX) (“ Avante ” or the “ Company ”) is pleased to announce that Mr. Rodney Wechsler, Avante’s Chief Operating Officer, has been appointed interim Chief Executive Officer. Mr. Wechsler joined the Avante team in August 2014 when INTO-Electronics Inc., the company he founded in 1991, was acquired by Avante. In November 2016, Mr. Wechsler was appointed Avante’s COO. George Rossolatos, the Company’s departing CEO, will work closely with Mr. Wechsler over the next 60 days as an executive director to ensure a smooth leadership transition. The Board is continuing with search efforts to identify and evaluate potential successor CEO candidates, including the interim CEO.
Strategic Review
The Company also announces today that its Board of Directors is commencing a review of strategic alternatives with the objective of maximizing shareholder value. Although not initiated in response to any specific proposal, the Board determined to initiate the strategic review process after receiving various unsolicited inquiries. Strategic alternatives include but are not limited to a business combination, merger or sale. The Company has engaged Crosbie & Company Inc. to assist it in conducting and implementing this strategic review.
There is no defined timeline for this strategic review and Avante continues to operate in the normal course. The strategic review may result in a variety of outcomes or no outcome and there can be no assurance that the Company will pursue or execute any specific action or transaction. The Company does not intend to make any further announcements or comments regarding the strategic review unless required by applicable securities laws or the policies of the TSX Venture Exchange (the “Exchange” ).
It is possible that the strategic review could conclude that the best way to enhance shareholder value is to continue to execute on the Company's current business plan. The Company’s balance sheet remains strong with over $3.4 million in cash, and the Company is currently assessing several attractive acquisition opportunities, each of which the Company believes could be strategic and accretive to the extent consummated.
Normal Course Issuer Bid
The Company also announces today that it intends to make a Normal Course Issuer Bid (a “ Bid ”) to purchase up to 5,240,558 common shares in total, which would be up to approximately 6.4% of the total number of common shares outstanding and approximately 10% of the Company’s Public Float (as that term is defined in the policies of the Exchange) to be transacted through the facilities of the Exchange.
The Bid has been approved by the Company’s Board of Directors; however, it is subject to acceptance by the Exchange and, if accepted, will be made in accordance with applicable rules and policies of the Exchange, and applicable Canadian securities laws. Under the Bid, all common share purchases will be made on the open market through the facilities of the Exchange and will be purchased for cancellation. The price which the Company will pay for any such common shares will be the prevailing market price at the time of acquisition. The actual number of common shares which may be purchased pursuant to the Bid will be determined by the board of the Company in its discretion and the funding for any purchases pursuant to the Bid will be from the working capital of the Company. Purchases under the Bid would be made from time to time by Cormark Securities Inc. on behalf of the Company.
The Company believes that the current and recent market prices for the Company’s common shares do not give full effect to their underlying value and that, accordingly, the purchase of common shares under the Bid would increase the proportionate share interest of, and be advantageous to, all remaining shareholders. The normal course purchases would also afford an increased degree of liquidity to current shareholders who would like to dispose of their common shares and will serve to stabilize the market price for the Company’s common shares. The Company has not purchased any common shares pursuant to a normal course issuer bid during the previous 12 month period.
About Avante Logixx
Avante Logixx Inc. (TSXV:XX) is a Toronto based security, monitoring, system integration and technology company. Its subsidiaries, Avante Security Inc. ( www.avantesecurity.com ), INTO Electronics Inc., ( www.247into.com ), City Wide Locksmiths Ltd. ( www.citywidelocksmith.ca ) and Architronics Limited ( www.architronics.com ) together provide best in class security systems and services for residential and commercial clients, and high-rise condominium applications, with industry leadership in designing and installing complex security systems, access control, intelligent video analytics, high-end lock services and smart home automation. Avante’s group of companies strives to be best in class in each of its verticals including an industry leading rapid alarm response offering combined with alarm system and live video analytics monitoring. Avante’s Executive Services team provides unparalleled end-to-end security solutions for high profile and high net worth families to ensure their safety in a comprehensive yet discrete manner, including an executive transportation option. Avante’s International Travel Security team helps corporations protect traveling employees working abroad in medium/high risk jurisdictions and has executed travel details in over 60 countries. Avante continuously develops innovative products and applications within its core competencies. Please visit our website at www.avantelogixx.com and consider joining our investor email list.
Avante Logixx Inc.
Leland Verner Chairman (416) 923-6984 x211 leland@avantelogixx.com
George Rossolatos Director (416) 923-6984 george@avantelogixx.com
FORWARD LOOKING STATEMENTS
All statements in this press release, other than statements of historical fact, are “forward looking information” with respect to Avante within the meaning of applicable securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or a variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, the list of risk factors identified in Avante’s Management Discussion & Analysis (MD&A), Annual Information Form (AIF) and other continuous disclosure, which list is not exhaustive of the factors that may affect any of Avante’s forward-looking information. In connection with the forward-looking statements contained in this and subsequent press releases, Avante has made certain assumptions about its business and the industry in which it operates and has also assumed that no significant events occur outside of Avante’s normal course of business. Although management believes that the assumptions inherent in the forward-looking statements are reasonable as of the date the statements are made, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein. Avante’s forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and Avante does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, readers should not place undue reliance on forward-looking information.
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.
