VANCOUVER: Softlab9 Software Solutions Inc. has entered into a letter of intent to acquire CleanGo GreenGo Inc., a privately held Alberta company that is the developer of a long lasting disinfectant technology that is eco-friendly and biodegradable.
The final structure of the transaction will be determined by the parties following the receipt of tax, corporate and securities law advice. The Transaction is an arm’s length transaction and pursuant to the provisions of the LOI, the parties intend to sign a definitive agreement in respect of the transaction on or before August 20, 2020, with an expected closing by the end of October 2020.
Under the terms of the LOI, all of the issued and outstanding common stock in the capital of CleanGo will be exchanged for common shares in the capital of the Company. On closing, existing holders of CleanGo Shares will be issued an aggregate 8,500,000 common shares and CleanGo will be a wholly owned subsidiary of the Company.
Contingent upon CleanGo achieving specified sales milestones over the 2020, 2021, and 2022 financial years, SOFT may issue up to an additional 6,000,000 common shares to the selling CleanGo shareholders. Effective on the closing of the Transaction, two current members of the board of directors of CleanGo will join the board of directors of the Company.
Rahim Mohamed, CEO of SOFT, said “This potential acquisition is an established, revenue-producing, high tech player in the biodegradable and disinfectant and sanitizer space. CleanGo manufactures a family of environmentally friendly and innovative cleaning products for multi-surface and multi-purpose applications, as well as a 70% ethyl alcohol gel sanitizer for use in hand hygiene to inactivate the COVID19 virus. We believe that CleanGo is well-placed to grow sales rapidly over the very near term as a result of the current high demand for cleaning products and sanitizers driven by COVID-19, and to benefit longer term from a continuing demand for a cleaner environment.”