LED Announces Closing of Apteryx, Inc. Acquisition and Related Financings
Apteryx becomes new wholly owned standalone subsidiary of LED
- Expected to be significantly accretive to revenue, EBITDA, and net income for the 2017 fiscal year
- Diversifies LED's revenue base and revenue timing, adding significant recurring revenue opportunities
- Apteryx has a proven and consistent history of profitable operations and attractive financial operating margins
- Establishes LED as a leader in imaging software to dental practices across the United States
- Provides LED with a range of software applications to augment its hardware offerings establishing the Company as an end-to-end dental imaging solution provider in a growing market
- Provides LED the addition of significant customer user base of dental professionals as well as partnership opportunities with Apteryx's existing OEM distribution partners for new and existing LED imaging products
- The addition of a software development team which will help expand development of new products
- Provides LED critical mass to support significant growth operationally and financially
- Kevin Crucs, founder of Apteryx, is joining LED in a senior leadership role and is taking a portion of the acquisition proceeds in LED stock
- LED management team is very familiar with Apteryx's management team and products. LED is currently a customer of Apteryx products and services
- Significant expansion of LED's IP portfolio with addition of 28 patents
- A brokered private placement of equity units of LED (the "Equity Units" comprising the "Brokered Equity Offering") for gross proceeds of approximately C$11.5 million. The Equity Units were priced at C$0.06 per Equity Unit, each consisting of one common share and one-half of one common share purchase warrant, with each whole warrant being exercisable for a period of 24 months into one common share of LED at a price of C$0.10 per common share.
- A brokered private placement of 88 debenture units of LED (the "Debenture Units" comprising the "Brokered Debenture Offering") for gross proceeds of C$880,000. Each Debenture Unit consisting of C$10,000 principal value 12% senior secured debentures maturing 24 months from the closing date, and 21,250 common shares of LED.
- A non-brokered private placement of Equity Units for gross proceeds of approximately C$1.8 million.
- A non-brokered private placement of 27 Debenture Units for gross proceeds of C$270,000.
Phone: 905.326.1888 ext 10
David Gane, CEO
Phone: 604.434.4614 ext 227
Forward Looking Statement
This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information include statements regarding, but not limited to, the expected financial impact of the acquisition of Apteryx, Inc., as well as statements regarding the Company's future plans, objectives, performance, revenue, profitability, and future strategy. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Corporation's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to:; acquisition integration risks; regulatory risk including national security review risk by the Committee on Foreign Investment in the United States; economic conditions; dilution; limited history of profits and operations; operational risk; distributor risks; working capital; potential conflicts of interest; speculative investment; intellectual property risks; disruptions in production; reliance on key personnel; seasonality; management's estimates; development of new customers and products risks; stock price volatility risk; sales and marketing risk; competitors and competition risk; regulatory requirements; reliance on few suppliers; reliance on subcontractors; operating cost and quarterly results fluctuations; fluctuations in exchange rates; product liability and medical malpractice claims; access to credit and additional financing; taxation; market acceptance of the Company's products and services; customer and industry analyst perception of the Company and its technology vision and future prospects; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international operations and sales; management of growth and expansion; dependence upon key personnel and hiring; the Company not adequately protecting its intellectual property; risks related to product defects and product liability; reliance on third party suppliers; future working capital investments in accounts receivable and inventory; credit terms from suppliers; and including, but not limited to, other factors described in the Company's reports filed on SEDAR, including its financial statements and management's discussion and analysis for the three and nine months ended September 30, 2016 and its Annual Information Form and financial report for the year ended December 31, 2015. This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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