HIRE Technologies Inc. (TSXV:HIRE.V)(OTCQB:HIRRF) has recently closed the sale of select assets from its Headhunters business unit to the former shareholders of The Headhunters Recruitment Inc. and 2498820 Alberta Ltd. This branding move will reduce HIRE’s liabilities, including a significant $4.7 million contingent consideration, ultimately strengthening its financial position.
Optimizing Business by Divesting Select Assets
HIRE Technologies Inc. has announced the completion of the sale of select assets from its Headhunters business unit to the former shareholders of The Headhunters Recruitment Inc. and 2498820 Alberta Ltd. This move is aimed at optimizing HIRE’s business by divesting select assets of the Headhunters business unit, which will enable the company to reduce its liabilities, including a significant $4.7 million contingent consideration, ultimately strengthening its financial position.
Sale of Select Assets
As per the Settlement and Asset Purchase Agreement, the Purchasers acquired the rights to THH’s trademark and domain name, email accounts, and website. The former THH Shareholders are also released from their non-compete agreements with THH and the Company. The Purchasers have offered to continue employment for all the employees of the Business. As consideration for select assets and certain specified liabilities of the Business, the Purchasers paid HIRE a nominal cash amount.
Mutual Release Agreement
In connection with the Transaction, the Purchasers and HIRE entered into a mutual release agreement relating to claims the Former THH Shareholders had under the original Share Purchase Agreement, including a $4.7M liability. The Company anticipates that it will recognize a gain on the sale, which will be recorded in Q2-2023 along with an estimated reduction to current liabilities of $4.7M in contingent consideration for that which was owed to the Purchasers in connection with the Share Purchase Agreement.
Unsecured Three-Year Term 8% Promissory Note
Additionally, the Company has agreed to issue to the Purchasers an unsecured three-year term 8% promissory note with an estimated principal amount of approximately $71,334, in partial satisfaction for the mutual release of claims under the Share Purchase Agreement. This move is aimed at strengthening HIRE’s financial position and boosting investor confidence.
About HIRE Technologies Inc.
HIRE Technologies Inc. is a capital allocator focused on workforce management and staffing solutions. The company aims to develop a diverse portfolio of brands that leverage their synergies, scale, and reach. HIRE has expertise in building and expanding staffing and executive search companies and benefits from a scalable shared services platform.
The sale of select assets from its Headhunters business unit is a strategic move by HIRE Technologies Inc. aimed at optimizing its business and reducing its liabilities. The move will enable the company to strengthen its financial position and boost investor confidence. As HIRE Technologies Inc. continues to develop a diverse portfolio of brands that leverage their synergies, scale, and reach, we can expect more such branding moves in the future.