Solium Capital Inc. has signed a letter of intent for the purchase of all of the issued and outstanding common shares of Stormworks Ltd.
The transaction, valued at $475,000, will take the form of a share-for-share exchange whereby Solium would issue 2,375,000 common shares at $0.20 per share. It is expected the transaction will close by month’s end.
Calgary-based Stormworks is a private company engaged in providing technical services in the area of e-commerce.
Brian Craig, the president and principal shareholder of Stormworks and the current chairman of Solium’s board of directors, will assume the role of president and CEO of the combined entity.
Concurrent with the closing of the Stormworks transaction, Solium is planning an equity financing to be issued through a non-brokered private placement. Solium will issue up to 5,000,000 common shares from treasury at a price of $0.20 per common share. These shares will be subject to a four-month trading restriction.
The financing replaces the terms previously announced on Jan. 25, which did not close.
In other company news, Solium also announced last week that it had closed the sale of its online brokerage, Solium Capital Online Inc., to Tristone Capital Advisors Inc. of Calgary.
Solium Capital Inc. (SUM-CDNX) is an outsourced provider of solutions for employee share ownership entitlement programs.