Hodgins Auctioneers announces Letter of Intent for Worldwide Auction Business and Election of New Director
MELFORT, SK, Sept. 12, 2012 /CNW/ - Hodgins Auctioneers Inc. (TSX.V: HA) ("Hodgins") is pleased to announce that it has signed a Letter of Intent with Pinto Ventures Ltd. ("Pinto"), a related party to Hodgins, to acquire www.taxlossauction.com and associated intellectual property rights and product marketing program. www.taxlossauction.com is an internet based digital auction business model designed for the world wide consignment and sale of tax losses.
The non-binding Letter of Intent is subject to several conditions including applicable regulatory approval, due diligence, and board of director's approval of the definitive purchase agreement. The purchase price of $500,000 is payable by the issuance of 2,500,000 shares at a deemed value of $0.20 per share. Hodgins will be obligated to pay 10% of net profits to Pinto, on a monthly basis.
The transaction is scheduled to close no later than October 1, 2012 or such other date as determined by Hodgins and Pinto.
The board of directors is pleased to announce that Grant Hodgins was elected a director at the recent annual shareholder meeting. The current directors are Gordon Anderson, Clive Llewellyn, Barrie Jung, Brian Lovig and Grant Hodgins. Mr. Jung was re-appointed as President and Mr. Hodgins was re-appointed as Chief Executive Officer.
About Hodgins Auctioneers Inc. Headquartered in Melfort, SK for more than 50 years, Hodgins Auctioneers is a provider of professional auction services. Hodgins is renowned for its experienced Auctioneers, award-winning promotions, dependable results and commitment to providing the ultimate marketplace for the sale of assets by auction.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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