CanaDream Corp. has acquired the RV Rental Operations of Westcoast Mountain Campers, a Western Canada competitor with RV rental operations in Vancouver and Calgary.
CanaDream acquired “substantially all of the assets and business of Westcoast for an aggregate purchase price of $1.58 million,” according to a news release.
The purchase price is comprised of approximately $1.38 million payable in cash, subject to a holdback for fleet repair adjustments and commission on confirmed sales, and 266,667 CanaDream common shares issued from treasury at a deemed price of 75 cents per common share.
The purchased assets include Westcoast’s fleet, 2015 booked sales receivables, assignable contract rights, business records, proprietary software, intellectual property, other fixed assets.
All of the common shares issued to the vendor as partial consideration for the purchased assets shall be subject to a four-month hold period.
As part of the deal, Westcoast’s founder and CEO Gord Rees agreed to a five-year non-competition and non-solicitation agreement and to enter into a two-year consulting agreement with CanaDream Inc.
Rees also will be granted 175,000 stock options exercisable at 60 cents a piece into CanaDream common shares. The options shall vest at the end of the two-year consulting term and shall expire five years after grant.
“We are pleased to welcome Gord to CanaDream. He brings years of experience and knowledge of the RV rental industry that will help build CanaDream’s brand and shareholder value,” CEO Brian Gronberg said. “We look forward to serving Westcoast’s guests and providing them with the opportunity to experience Canada at their own pace, as guests of CanaDream.”