Brainhunter Inc.

Brainhunter Inc.

August 13, 2007 14:43 ET

Brainhunter Explores Private Equity Alternatives to Fund Growth Opportunities and Enhance Value to Shareholders

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2007) -


Brainhunter Inc. ("Brainhunter" or the "Company") (TSX:BH) announces that it is reviewing its strategic alternatives with a view to enhancing value to shareholders and to take advantage of acquisition growth opportunities. The Company has engaged investment bankers, Osprey Capital Partners, to assist in the process.

The Company has identified a number of significant acquisition opportunities, both domestically and globally, and is exploring private equity financing as a viable funding alternative. A private equity transaction may include taking the public company, Brainhunter, private.

States John McKimm, Chairman and CEO of Brainhunter, "The management team and Board of Directors believe Brainhunter's common shares are trading at a significant discount to their fair value. At the current share price, issuing equity to fund acquisition opportunities would be excessively dilutive and not in the best interest of shareholders. The private equity alternative has the potential to not only provide liquidity to shareholders, at an enhanced value to current market, but also to provide the capital necessary for acquisition growth."

Going forward, management will work closely with the Board of Directors and its advisors to explore and evaluate Brainhunter's strategic alternatives and determine the course of action that is in the best interest of the shareholders, including allowing the flexibility to expedite growth opportunities.

The Company cautions that the exploration of any strategic alternatives, including private equity, may not result in any transaction. Subject to applicable disclosure obligations under securities law and regulations, the Company does not intend to disclose any developments in its exploration of alternatives and undertakes no obligation to do so until the Board of Directors has made a final decision regarding a specific alternative and such decision results in a transaction.

Via acquisition and organic growth initiatives, Brainhunter has grown from $2.8 million for fiscal year September 2001 to where sales have reached an annualized run rate of approximately $225.0 million. The EBITDA annualized run rate exceeds $8.0 million. Backlog plus expected renewals and extensions of contracts and standing offers exceed $400.0 million, with over $200.0 million expected for the 2008 fiscal year. Organic revenue growth for the fiscal year ending September 30, 2007 is expected to exceed 35%. EBITDA for the three quarters year-to-date is $6,176,877, up from $3,045,696 for all of fiscal 2006.

Brainhunter has put in place a proven platform (including technology, processes and management) to drive organic and acquisition growth. The Company expects revenue and EBITDA growth, and operating margin improvement in 2008, as results materialize from the technology driven Master Vendor Staffing Procurement Value Proposition. This Value Proposition incorporates the complete slate of Brainhunter's Software, Solutions and Services offerings, and provides a comprehensive Procurement Solution to assist our clients in managing their total staffing requirements.

Brainhunter Inc. is publicly traded on the TSX and is a leading global provider of end-to-end HCM Software, Solutions and Services (the "Offerings"). Utilizing ISO 9001/2000 technology, Best Practices and processes, Brainhunter has created Offerings that streamline the recruitment and management of permanent, contract and project based people requirements and provides real time analysis of HR metrics that improves operational decision-making and reduces cost. Brainhunter has over 250 employees, over 1,700 contract personnel with offices across Canada, a presence in select U.S. jurisdictions and offices in India, China and the U.K., servicing over 2,000 clients.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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