Yahoo Finance AVANTE LOGIXX INC. ANNOUNCES CLOSING OF THE SALE OF LOGIXX SECURITY INC. TO SSC SECURITY SERVICES CORP. AND PROVIDES A CORPORATE UPDATE
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TORONTO-Ontario, June 01, 2022 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) is pleased to announce that, following the approval by shareholders at the meeting held on May 30, 2022, it has completed the sale of its subsidiary Logixx Security Inc. (“Logixx”) to SSC Security Services Corp. (TSXV: SECU, “SSC”) effective June 1, 2022 as previously announced in the Company’s March 30, 2022 press release and its Management Information Circular dated April 28, 2022.
Going forward, the Company intends to focus on in-lane acquisitions to support organic growth, expansion of international service offerings and the development and deployment of new technologies in Cyber Security, Health, and Advanced AI technologies to capture data around the world which can be used for predictive disaster mitigation for its clients and their assets.
Since March 30, 2022, the Company has implemented operating expense cost savings of $1.6 million, on an annualized basis, the closing of its standalone corporate office and reductions of staff and vehicle leases. Management will continue efforts towards identifying further expense and lease obligation savings. After receipt of proceeds from the sale of Logixx, and full repayment of bank debt, strategic review transaction costs and recent severance arrangements, the Company will have zero debt and expects to have cash balances of $10 million, which is equivalent to approximately $0.38 per share. The Company also expects to have positive run rate Adjusted EBITDA as of the second quarter of its fiscal year ending March 31, 2023.
Upon completion of the sale of Logixx, the Company amended and restated the credit facilities with its bank to provide for a demand-based revolving credit facility of $2 million (currently undrawn) plus arrangements for corporate visa and cash management requirements.
“I am pleased with the progress we have made towards transforming our business over a short period of time and we expect to make further announcements over the coming months” said Manny Mounouchos, CEO and Board Chair of Avante.
About Avante Logixx Inc.
Avante Logixx Inc. (TSXV: XX), provides high-end security services through its wholly owned subsidiary, Avante Security Inc., serving residential customers located in Toronto and Muskoka regions of Ontario, Canada. With an experienced team, a focus on customer service excellence and development of innovative solutions, we remain committed to providing our shareholders with exceptional returns. Please visit our website at www.avantelogixx.com.
Avante Logixx Inc.
Emmanuel Mounouchos
CEO
416 923 6984
manny@avantesecurity.com
Forward-Looking Information and Cautionary Language
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may” “estimate”, “pro-forma” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the Company’s ability to achieve the benefits expected as a result of the sale of Logixx Security Inc., anticipated growth from acquisitions, new service offerings and from development and deployment of new technologies and the list of risk factors identified in the Company’s Management Discussion & Analysis (MD&A), Annual Information Form (AIF) and other continuous disclosure documents available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update any such statement, whether as a result of new information, future events or otherwise.
Non-IFRS Financial Measures
This press release includes certain measures which have not been prepared in accordance with IFRS such as EBITDA and Adjusted EBITDA. These non-IFRS measures are not recognized under IFRS and, accordingly, users are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.
References to EBITDA are to net income before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net income before interest, taxes, depreciation, amortization of intangibles & capitalized commissions, share-based payments, acquisition, integration and / or reorganization costs and deferred financing costs. Neither EBITDA nor Adjusted EBITDA is an earnings measure recognized by International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS. Management believes that Adjusted EBITDA is an appropriate measure in evaluating Avante’s performance. Readers are cautioned that neither EBITDA nor Adjusted EBITDA should be construed as an alternative to net income (as determined under IFRS), as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) or as a measure of liquidity and cash flow. Avante’s method of calculating Adjusted EBITDA may differ from methods used by other issuers and, accordingly, Avante’s Adjusted EBITDA may not be comparable to similar measures used by other issuers.
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.
