Transaction Details:
In consideration for the 50% acquisition of Keystone Labs, EVIO Canada, Inc. will pay a cash purchase price of an aggregate of CDN$2,495,000. This purchase price will be split as to CDN$2,035,000 to the shareholders of Keystone Labs to purchase 45% of the issued and outstanding shares of the company and as to CDN$460,000 to Keystone Labs to purchase shares of Keystone Labs equal to an additional 5% of the issued and outstanding shares directly from treasury. EVIO(EVIO) will provide a line of credit to Keystone Labs up to a maximum principal amount of CDN$1,000,000 to support operations. In connection with and immediately following the completion of the foregoing transactions, the shareholders of Keystone Labs shall subscribe for an aggregate of 1,291,391 of common shares in the capital of EVIO(EVIO) for an aggregate purchase price of CDN$1.95M on a private placement basis. The proposed transaction is subject to customary closing conditions, including both parties completing due diligence and obtaining any approvals from applicable local authorities. Contingent upon completion of final agreements and documents, the transaction is expected to close on or about May 1, 2018.
First thing this is done in Canadian money which needs to be translated to American money for full understand. The conversion rate currently is $1.00 Canadian = .793356
$2,495,000 CAD =$1,978,485.71USD Total cash investment by EVIO
1,950,000 CAD =1,546,127.61USD US dollars for private placement
1546127,61 /1,291,391=$1.19725 per share
Looks good on paper for a total investment of $1,978,485 for 50%.
Next you have Keystone paying $1,291,391 for 1,291,391 shares.
Plus $1.0 Mil line of credit. Not sure if Canadian or US Dollars
In all fairness looks like a good deal. Now let's get short-coming solved.
