Tribe Property Technologies Expands Presence in Greater Toronto Area with the Acquisition of Meritus Group Management Inc.
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- Tribe has entered into an agreement to acquire property management firm, Meritus Group Management Inc., which expands Tribe's footprint in the Province of Ontario.
- This acquisition is expected to add over 5,000 additional homes under management for Tribe
VANCOUVER, BC, Aug. 29, 2023 /CNW/ - Tribe Property Technologies Inc. (TSXV:TRBE) (OTCQB US: TRPTF) ("Tribe" or the "Company") is pleased to announce that it has agreed to acquire Meritus Group Management Inc. ("Meritus"), an arm's-length party, strengthening Tribe's presence in the greater Toronto region of Ontario. The companies signed the share purchase agreement (the "Agreement") for this transaction August 29, 2023.
"We look forward to welcoming the Meritus team and their experience managing condominium properties in the Greater Toronto Area," said Joseph Nakhla, CEO of Tribe. "Meritus expands our management presence directly into Toronto where we have developed many real estate developer relationships through our pre and post construction software. This move allows us to package our entire solution of construction software, property management software, property management services and digital marketplace for homeowners and residents for the thousands of managed communities in greater Toronto."
The acquisition is a continuation of Tribe's strategy of identifying operational opportunities and continuing to expand the Company's national footprint and digital services. Meritus has over 5,000 homes under management. This acquisition strengthens Tribe's national presence, now with 8 offices across Canada – 5 in British Columbia, 1 in Alberta and 2 in Ontario, including the Company's new Meritus office in greater Toronto.
"Our team is excited to be joining a like-minded company with shared values of innovation, industry education and operational efficiencies as key to modernizing the property management industry and improving the level of service we can all provide for our clients," said Meritus Group Management Inc. Principal, Dean McCabe.
In exchange for all the outstanding share capital of Meritus, Tribe has agreed to pay $1,000,000 to the existing shareholders of Meritus Group Management Inc., payable as follows:
- $50,000 payable in cash within five (5) days of execution of the Agreement;
- $450,000 payable in cash on Closing, subject to adjustments;
- $200,000 payable in common shares of Tribe; and
- $300,000 payable by promissory note to be executed and delivered on Closing.
The issue price of the shares will be equal to the twenty-day weighted average closing price immediately prior to completion of the acquisition. All Consideration Shares issued will be subject to a voluntary lock-up from which one-third of the Consideration Shares will be released every six months for a period of eighteen months.
The Note evidencing the Vendor Financing shall bear interest of 7% per annum, with interest payable on the 1st day of each month commencing November 1, 2023. The principal shall be paid in equal annual instalments with one third payable commencing October 2, 2024. The Vendor Financing shall be secured against the assets of Meritus.
Closing is expected at the end of September 2023 and is subject to receipt of TSX Venture Exchange approval and satisfaction of customary conditions and documentation. It is anticipated that Meritus will continue to operate independently until mid-2024 at which time, Meritus principal Dean McCabe and the rest of the Meritus team will formally join Tribe. Dean McCabe will continue to lead Meritus.
No finder's fees were paid or payable in conjunction with this transaction.
Meritus Group Management Inc. was founded by Dean McCabe in 2016, with the belief that condominium communities can benefit from a management relationship that is built on trust and respect earned through transparency, accuracy, and reliability. Meritus generated over $2 million in revenues in its latest fiscal year.
Tribe is a property technology company that is disrupting the traditional property management industry. As a rapidly growing tech-forward property management company, Tribe's integrated service-technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers. Tribe seeks to acquire highly accretive targets in the fragmented North American property management industry and transform these businesses through streamlining and digitization of operations. Tribe's platform decreases customer acquisition costs, increases retention, and allows for the addition of value-added products and services through the platform. Visit tribetech.com for more information.
ON BEHALF OF THE BOARD
"Joseph Nakhla"
Chief Executive Officer
Tribe Property Technologies Inc.
Joseph Nakhla
Chief Executive Officer
1606 – 1166 Alberni Street, Vancouver, British Columbia
V6E 3Z3
Phone: (604) 343-2601
Email: [email protected]
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.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws regarding the Company and its business. When or if used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. Forward-looking statements or information in this news release may relate to statements with respect to the acquisition of Meritus Group Management Inc. and closing thereof; the aims and goals of the Company; financial projections; growth plans including future prospective consolidation in the rental management sector; future acquisitions by the Company; the completion of this transaction; beliefs of the Company with respect to the independent owner-investors market; prospective benefits of the Company's platform; and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon several assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, and social risks, contingencies, and uncertainties. Many factors, both known and unknown, could cause results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. The Company does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules, and regulations.
SOURCE Tribe Property Technologies Inc.
Pardeep Sangha, Investor Relations, Email: [email protected]
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