Penfold Capital Acquisition IV Corporation

November 18, 2013 09:00 ET

Penfold Capital Acquisition IV Corporation to Acquire Service Results Technology Inc.

TORONTO, ONTARIO--(Marketwired - Nov. 18, 2013) -


Penfold Capital Acquisition IV Corporation (the "Company") (TSX VENTURE:SEL), is pleased to announce that it has entered into a share purchase agreement (the "Agreement") whereby it has agreed to acquire all of the issued and outstanding securities in the capital of Service Results Technology Inc. ("SRT") for an aggregate purchase price of $5 million (the "Purchase Price"). The Purchase Price will be satisfied in part through the issuance of 10 million common shares at a deemed price of $0.10 per share. The balance of the Purchase Price, being $4 million, will be paid on closing by way of cash consideration.

In order to finance the cash consideration portion of the Purchase Price, the Company will undertake a private placement of convertible debentures ("CDs"). The proposed placement of CDs may be completed by way of a brokered or non-brokered private placement or a combination of same. The terms of the CDs have yet to be finalized but it is anticipated that the CDs will be for a term of three (3) years, bearing an annual interest rate of 10% payable quarterly and will be convertible, at the option of the holder, in to common shares of the Company at a deemed price of $0.15 per share. In addition, the CDs will also feature detachable warrants equal to 10% of the commons shares issuable upon the conversion of the CDs. Warrants will be convertible into common shares at an exercise price of $0.25 per common share for a period of two (2) years from date of issuance. The final terms and conditions of the CDs will be finalized between the Company and any broker engaged by the Company to undertake the placement. Additional information will be provided as it becomes available.

Closing is expected on or before January 31st and is conditional on customary regulatory consents and closing conditions.

About Service Results Technology Inc.

SRT, based in Markham, Ontario, provides high-end electronic service and repair to many large global manufacturers. SRT has been in the electronics service industry for over 20 years, repairing some of the most sophisticated electronics components available in the market today. SRT is known for being a leader as a repair and service provider with an established customer base and exclusive service provider status for some of the largest brand names and retailers locally and around the world.

"SRT is a great add on for the Company and its wholly owned subsidiary, SLM Logistics Corporation", said Vito Buffone, President and Chief Executive Officer of the Company. "SRT will put SLM into a market vertical we currently don't service, and SLM will offer value added services to SRT's local and global customer base. It is anticipated that the acquisition of SRT will lead to significant increases in our combined revenue and profitability".

About Penfold Capital Acquisition IV Corporation

The Company, through its wholly owned subsidiary SLM Logistics Corporation, is dedicated to managing consumer and retail store returns and problematic electronics through a product management system. The Company manages product warranties, returns from receiving to end-of-life with quality assurance testing, factory servicing, resale through non-traditional channels and recycling of non saleable product to support a closed-loop distribution process. The Company is able to recycle the non-saleable returns it receives, thereby allowing customer returns to have a very low environmental impact. Independent Waste Audit Reports, since 2011, show the Company is able to achieve a consistent waste diversion rate of over 98.6%. This means brands using the Company's processes are able to divert over 98.6% of their product from landfill. The Company is currently working on rolling out this product offering to retailers to allow them to capture the environmentally conscious consumer. The Company currently operates only in Ontario.

Neither 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.

Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Company's securities; the state of the industry; recent market volatility; the Company's ability to raise the necessary capital or to be fully able to implement its business strategies; and other risks and factors that the Company is unaware of at this time. The Company expressly disclaims any obligation to update any forward-looking statements except as may be required by law.

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