VANCOUVER, British Columbia-Wireless enterprise company Infowave Software Inc. announced a complicated business deal that will net the company $4.6 million in new money from an investor in the real-estate business.
The deal will give executives from Canadian real-estate company Concord Pacific Group Inc. a majority equity interest in Infowave, while also giving Infowave’s current investors a minority equity interest in the company. Infowave’s current investors will also gain a minority stake in the real-estate firm. Infowave said it will apply to have its stock remain on the Toronto Stock Exchange after the deal goes through.
As part of the deal, Infowave said it will “participate in the development of three buildings to be constructed at Concord Pacific Place in Vancouver, B.C.”
The agreement is contingent on approval from the British Columbia Supreme Court, Infowave security holders and regulatory agencies.
“This transaction represents a real win for Infowave and its shareholders,” said Jerry Meerkatz, the company’s president and chief executive officer. “Infowave will receive a substantial increase of capital to carry on its business in a new company, without dilution to its existing shareholders. At the same time shareholders will maintain their current interest in Infowave, and receive a minority equity interest in a second venture as well. I would also like to take this opportunity to reassure our customers and business partners that this transaction will have no impact on Infowave’s day-to-day operations, and it should be `business as usual’ throughout.”
