TORONTO, ON / ACCESSWIRE / October 7, 2022 – HIRE Technologies Inc. (TSXV: HIRE.V) (OTCQB: HIRRF) (“HIRE” or the “Company“), a capital allocator focused on modernizing and digitizing human resources solutions, announces that it has entered into a definitive agreement to divest Vancouver-based Taylor Ryan Inc. to the vendors in the original transaction on October 7, 2022 (the “Transaction”). As a result of this Transaction, HIRE i) extinguishes a 2023 capital commitment of $9.7 million, and ii) expects to record a gain on sale in the fourth quarter.
The Transaction closed (“Close”) October 7, 2022 and is cashless. The purchasers (the “Purchasers”) received 100% of the shares of Taylor Ryan Inc., and will receive transitional services from HIRE. A gain on sale will be recorded in Q4-2022 along with an estimated reduction to current liabilities of $7.9 million in contingent remuneration and an estimated reduction in net assets of $4.8 million.
Prior to Close, the Company purchased certain receivables of Taylor Ryan Inc. in exchange for a $1.0 million secured 8% promissory note. The promissory note will rank junior to the Company’s senior secured lending facilities.
The Company has appointed Charlie Cooper to succeed Dan Teguh as Chief Financial Officer (“CFO”) effective October 7, 2022. Mr. Cooper is a very experienced CFO with many years of international business and public company experience guiding professional services companies. Mr. Teguh will stay with the Company until October 14, 2022 to facilitate the transition of his duties. The Company wishes Mr. Teguh well in his future endeavours.
About HIRE Technologies Inc.
HIRE is a growing capital allocator that is rapidly establishing itself as a market leader in workforce management and staffing. HIRE’s mission is to create a world-class portfolio of brands that will define the future of human resources through synergies, scale, and reach. The Company has extensive experience in building and growing staffing and executive search companies and is supported by a large recurring revenue base and a highly scalable shared services platform. This structure enables HIRE to create value for partners and shareholders. For more information, visit hire.company.
Chief Executive Officer
Neither the TSXV 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 news release.
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of HIRE and the environment in which the business operates. Any statements contained herein that are not statements of historical facts, including without limitation statements with respect to the timing of Close and the potential impact of the Transaction on the Company’s financial position for the quarter ending December 31, 2022, may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions. Statements set out in this news release relating to HIRE’s expectations as to future growth and results are all forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers are referred to the risk factors associated with the business of the Company set out in the Company’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.