Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) (TSX: HNL.TO) announced today that the Corporation has successfully completed the previously announced acquisition of Shelter Modular Inc. (“Shelter Modular”). Horizon North has taken-up and paid for all common shares of Shelter Modular (“Shelter Shares”) deposited under Horizon North’s previously announced offer (the “Offer”) by way of exempt take-over bid for Shelter Modular, and now holds approximately 96.6% of the outstanding Shelter Shares.
The successful acquisition of Shelter Modular, based in Aldergrove, British Columbia, provides Horizon North with immediate manufacturing capacity to meet increasing demand in the Modular Solutions division, and provides exposure to future opportunities to grow the modular business. Horizon North and Shelter Modular agreed to a purchase price of $4.75 million, payable in a mix of common shares of Horizon North and assumption of existing debt. As the holders of not less than 90% of the Shelter Shares outstanding (on a fully-diluted basis) have accepted the Offer, Horizon North intends to exercise its statutory rights under the Business Corporations Act (Alberta) to acquire the remaining Shelter Shares that Horizon North did not acquire under the Offer (the “Compulsory Acquisition”). A notice of the Compulsory Acquisition will be sent to the remaining holders of Shelter Shares.
“In addition to growing our manufacturing capacity, this acquisition also exposes Horizon North to future opportunities to grow modular business and gain additional market share,” says Rod Graham, President and Chief Executive Officer of Horizon North. “The facility’s location in lower mainland British Columbia means lower transportation costs and increased labour efficiency for existing municipal and provincial government clients in BC, further enhancing our best in class service.”
Horizon North continues to execute on several contracts to provide modular housing solutions in the lower mainland for the Vancouver Affordable Housing Agency (“VAHA”) and across other centres in British Columbia for the BC Housing Management Commission (“BC Housing”). The construction of modular housing is part of a commitment from the Government of British Columbia (the “Province”) to build supportive homes for those struggling with homelessness. The Province allocated $291 million in 2017 to support the construction of 2,000 modular housing units across various centres in British Columbia, and the 2018 provincial budget provides for substantial additional funding over the next three years to continue building affordable and student housing infrastructure.
“Adding this new manufacturing facility in Aldergrove to our existing facility on traditional Tk’emlúps te Secwe’pemc land in Kamloops positions us to build on our current successful projects with VAHA and BC Housing and provide a made-in-British-Columbia solution to support the efforts of these government agencies to introduce critically needed housing for vulnerable BC citizens,” adds Rod Graham.
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Modular Solutions division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.
Additional information related to Horizon North, including the Corporation’s annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
For further information, please contact Rod Graham, President and Chief Executive Officer or Scott Matson, Senior Vice President Finance and Chief Financial Officer, 900, 240 – 4 Ave. S.W., Calgary, Alberta T2P 4H4; Telephone (403) 517 – 4654, Fax (403) 517 – 4678; website: www.horizonnorth.ca
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon North. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “will”, “expects”, “believes”, “anticipates” and similar expressions. This press release contains forward-looking statements pertaining to, among other things, the following: the completion of the Compulsory Acquisition, the sending of a notice of the Compulsory Acquisition to the remaining holders of Shelter Shares, the benefits of the transaction, and growth of the Corporation’s Modular Solutions portfolio.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Horizon North as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Horizon North used for this press release may prove to be incorrect. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Horizon North and described in the forward-looking statements contained in this press release, including risks relating to the demand for modular structures. Risk factors that could affect Horizon North’s operations and financial results include the ability of Horizon North to successfully implement its strategic initiatives and achieve expected benefits from the transaction. Additional information on these and other risks, uncertainties and factors that could affect Horizon North’s operations and financial results are included in Horizon North’s annual information form and other documents which may be accessed through the SEDAR website at www.sedar.com.
Although Horizon North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Horizon North’s actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, Horizon North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.