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CLEVELAND, Aug. 31, 2018 (GLOBE NEWSWIRE) -- Innovest Global Inc. (OTC Markets: IVST) (the “Company” or “Innovest”), has signed a letter of intent, and agreed to final structure for the acquisition of a $30 million revenue company in the Building Materials Industry. This will add to its current operations in commercial and industrial products and services, and its recent biotech acquisition.
This transaction represents a substantial, over five-times increase in Innovest’s revenue, and marks entry into its third industry sector. “This is a transformational acquisition for Innovest,” said, Chief Executive Officer, Dan Martin. “Because of the revenue, but also because the leadership of the organization is world class, well respected in their industry, and has a vision and plan for growth that I believe is highly likely to succeed in our model once we hit the switch.” Mr. Martin noted that the company has a unique model, which at the current sales rate is slightly profitable, and features low fixed costs and a growth strategy that projects increasing profits with significant sales growth. The target’s leadership group views Innovest as the ideal platform from which to launch their growth plan. The Building Materials Industry outlook is very favorable overall, and is trending toward consolidation, both of which are attractive to Innovest.
Discussions began in March 2018. In April, formal negotiations began. Innovest formally presented to the board of directors of the target company on June 11th, which approved and executed a proposed Letter of Intent at that meeting. Yesterday, after over two months of negotiating the structure of the transaction, Innovest learned that both parties have agreed on the long form documents and structure of the transaction. Because the transaction represents such a significant revenue boost to Innovest, both parties maintained confidentiality throughout the process until final terms and language were acceptable. Details of the transaction, once completed, will be disclosed in Innovest’s pending 2017 audit and forthcoming OTC Markets disclosures (as “Subsequent Events”). Both parties view the transaction as “very attractive”. Terms include a 100% acquisition of the target entity in exchange for the issuance of 5 million common shares, restricted, with a minimum value guarantee to be achieved in two years, and a high five-figure cash payment at closing. Closing is expected in the first half of September. Look for much more information to come soon.
“Our team has been very focused on some very meaningful projects, for several months. We’ve put smaller opportunities on hold and focused our efforts on these key initiatives. We are working hard to finalize several of these priorities this quarter,” said Mr. Martin. “We’ve got a talented team, who I appreciate immensely. We’re having fun, working hard, and looking forward to the many exciting things ahead.”
About Innovest Global, Inc.
Innovest Global, Inc. (OTC Markets: IVST) is in the Conglomerates industry, a diversified holding company with operations in commercial and industrial products and services, energy, biotechnology, and health services. Our primary growth strategy is to acquire existing companies in a select few industries, and attract new customers in cost effective ways. Currently, we have a Commercial & Industrial Division, and a Biotechnology & Health Services Division.
Innovest owns 20% of StemVax Therapeutics which is the first company in its Biotech Division.
StemVax Therapeutics is a Translational Biotechnology Company that develops novel therapies for brain tumor patients. We focus our efforts on developing immunotherapeutic approaches to treating patients with Glioblastoma Multiforme (GBM), a devastating brain cancer. We also focus our research efforts on novel drug development to target Cancer Stem cells and other multi-resistant cancer cells. We seek to make a difference in patient’s lives. Bringing new beginnings to the market by developing novel therapeutics.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the OTC Markets. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.