NANAIMO, BC , July 14, 2020 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (AEP.V) (OTC Markets: APEUF) announced today that it has entered into an asset purchase agreement to acquire selected assets of a local truss manufacturer (the "Asset Acquisition") as the Company expands its geographical footprint into the Lower Mainland region of British Columbia .
"The residential and commercial building market in BC has continued to perform well in 2020. AEP's core market segment in the residential market showed a 3.5% increase in registrations to June 2020 , when compared to 2019. This is incredibly impressive when taking in to consideration BC had large parts of the economy shut down for several weeks battling the global COVID-19 pandemic. It is this buoyancy that encouraged us to fast track our plans for expansion in BC, firstly through establishing our new pre-fabricated wall factory expansion in Nanaimo , and now through this geograpically smart expansion. There is a siginificant market demand for AEP's products and services in Lower Mainland BC, and our other BC location is performing at record levels.," says Dirk Maritz , AEP's CEO & President. "A few months ago we identified an outstanding smaller player in the truss manufacturing market and have entered into an agreement to purchase some key assets. Once this acquisition is completed, we will continue upgrades to this facility and its equipment in order to expand and develop the Lower Mainland market through a full service business. Located in the Fraser Valley, this new operation will supply our pre-manufactured wall-panels, manufactured floor trusses, I-joists, LVL options, open web floors, roof trusses and other engineered wood products to the very large Lower Mainland BC market."
The Asset Acquisition will be conducted through AEP's newest established company, to be known as Novum Building Components Ltd. The selected assets will be purchased at a price of $350,000 , payable in cash, with 50% of the purchase price to be paid on closing and the remaining 50% payable in equal monthly installments over 3 years. Completion of the Asset Acquisition is expected to occur in the latter half of July 2020. Closing is subject to, among other things, evidence of discharge of all encumbrances affecting the assets to be purchased, delivery of general conveyance documents, assignment of certain contracts and entry into a lease agreement for the facility site.
About Atlas Engineered Products Ltd.
AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively, giving us a unique opportunity to consolidate a fragmented industry of independent operators.
Forward Looking Information
Information set forth in this news release contains "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein include, but are not limited, statements regarding the Acquisition; the expected closing date of the Acquisition; the Company's intention to expand its geographical footprint into the Lower Maindland and the anticipated benefts of the foregoing. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. In making the forward-looking statements included in this news release, AEP has applied several material assumptions, including, but not limited to, the assumption that the all conditions precedent to the completion of the Asset Acquisition as contemplated in the asset purchase agreement will be satisfied as anticipated and in a timely manner; no regulatory approvals will be required in respect of the Asset Acqusition; that the proposed activities to expand the Company's business into the Lower Mainland will proceed as planned, and that market fundamentals will result in sustained demand for the Company's product and services, and other risks and uncertainties, including those described in AEP's Management's Discussion and Analysis for AEP's year ended December 31, 2019 and the three months ended March 31 , 2020. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Although AEP believes that the expectations reflected in the forward looking statements are reasonable, there is no assurance that such expectations will prove to be correct, or that such future events will occur in the disclosed time frames or at all. AEP cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of risks and factors, many of which are beyond AEP's control. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required under applicable securities legislation, AEP undertakes no obligation to publicly update or revise any forward-looking statements.
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.
SOURCE Atlas Engineered Products Ltd.
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