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TORONTO-Ontario, June 01, 2022 (GLOBE NEWSWIRE) — Avante Logixx Inc. (TSX.V: XX) (OTC: ALXXF) (“Before“or the”Company”) is pleased to announce that, following shareholder approval at the meeting held on May 30, 2022, it has completed the sale of its subsidiary Logixx Sécurité Inc. (“Logixx”) to SSC Security Services Corp. (TSXV: SECU, “CSS”) effective June 1, 2022, as previously announced in the Company’s press release dated March 30, 2022 and in its management information circular dated April 28, 2022.
Going forward, the company intends to focus on acquisitions along the way to support organic growth, the expansion of international service offerings, and the development and deployment of new technologies in the areas of cybersecurity. , healthcare and advanced AI to capture worldwide data that can be used for predictive disaster mitigation for its customers and their assets.
Since March 30, 2022, the Company has implemented operating cost savings of $1.6 million, on an annualized basis, the closure of its stand-alone headquarters and reductions in personnel and vehicle leases. Management will continue its efforts to identify further savings on rental expenses and obligations. Upon receipt of the proceeds from the sale of Logixx and full repayment of bank indebtedness, strategic review transaction costs and recent severance agreements, the Company will have no debt and expects to have balances of cash of $10 million, which equates to approximately $0.38 per share. . The Company also expects to have positive Adjusted EBITDA from the second quarter of its fiscal year ending March 31, 2023.
Upon closing of the Logixx sale, the Company amended and updated credit facilities with its bank to provide a $2 million demand revolving credit facility (currently unused) plus visa arrangements. business and cash management requirements.
“I am pleased with the progress we have made to transform our business in a short time and we expect to make further announcements over the coming months,” said Manny Mounouchos, CEO and Chairman of the Board of Avante. .
About Avante Logixx Inc.
Avante Logixx Inc. (TSXV: XX), provides premium security services through its wholly owned subsidiary, Avante Security Inc., serving residential customers located in the Toronto and Muskoka regions of Ontario, in Canada. With an experienced team, a focus on excellence in customer service and the development of innovative solutions, we remain committed to delivering exceptional returns to our shareholders. Please visit our website at www.avantelogixx.com.
Avante Logixx Inc.
416 923 6984
Forward-Looking Information and Caution
This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the Company’s business 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 contained in this press 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 realize the expected benefits from the sale of Logixx Security Inc., anticipated growth from acquisitions, new service offerings and the development and deployment of new technologies and the list of risk factors identified in the Company’s 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 results may differ materially from those expressed in such forward-looking statements. Accordingly, readers should not place undue reliance on these forward-looking statements. Further, these forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the Company undertakes 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 that have not been prepared in accordance with IFRS such as EBITDA and Adjusted EBITDA. These non-IFRS measures are not recognized under IFRS and therefore users are cautioned that these measures should not be construed as substitutes for 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 earnings before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net earnings before interest, taxes, depreciation, amortization of intangible assets and capitalized commissions, share-based payments, acquisition, integration and/or reorganization costs and deferred financing costs . Neither EBITDA nor Adjusted EBITDA is a recognized earnings measure under International Financial Reporting Standards (“IFRS”) and does not have a standardized meaning prescribed by IFRS. Management believes that Adjusted EBITDA is an appropriate measure to assess 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 cash flow from operations of operating (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, therefore, Avante’s Adjusted EBITDA may not be comparable to similar measures used by other issuers.
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