TORONTO, March 31, 2020 /CNW/ - OV2 Investment 1 Inc. (the "Company") (TSXV: OVO.P), a Capital Pool Company, is pleased to provide an update regarding its previously announced transaction with Freightera Logistics Inc. ("Freightera").
In connection with the closing of the proposed transaction, Freightera has entered into an agreement with Canaccord Genuity Corp. to assist in completing a private placement for a minimum of $3.5 million on a mutually agreeable terms ("Concurrent Financing").
"We are very excited about the prospect Freightera presents to investors and firmly believe that this will be another successful Canadian technology company," said Sheldon Pollack, CEO of Ov2 Investment 1. "The engagement with Canaccord represents a significant milestone for our shareholders, as this moves us a step closer to completing a successful transaction."
"Freightera has seen significant growth over the last three years and we are extremely excited to expand this growth as a public company," said Eric Beckwitt, CEO of Freightera. "Despite a challenging economic environment related to the current COVID-19 pandemic, our business continues to grow quickly, and we have extremely high expectations for what's ahead in 2020 and beyond."
Sustaining Movement of Essential Supplies During COVID-19
Freightera, with its redundant network of just under 1,000 carriers, fully automated quoting and instant booking system, and 100% home-based team by design, is currently shipping essential products, including food and medical supplies to all parts of the US and Canada. The number of freight shippers using the platform has surged in March, and stable to growing demand is expected as other transportation companies and systems shut down or reduce capacity during the crisis. If any company, hospital or government agency is looking for logistics assistance in receiving or transporting essential medical equipment, foods and protective gear they should email the company directly at [email protected].
Freightera is a private company formed under the laws of the Province of British Columbia. Freightera is a leading freight shipping marketplace offering instant freight quotes, online shipment bookings and lower emission transportation options in North America.
In 2019, Freightera was the 3rd fastest growing company in BC according to Business in Vancouver. From 2018 to 2019, Freightera revenue grew by 237% from $5.3M to $12.6M.
From January to February 2020, Freightera revenue grew by 24%. Despite the US and Canadian markets posting near-record declines in March, Freightera revenue continued to grow at 8% over February numbers.
Freightera will be completing one or more private placement financings in advance of the $3.5 million Concurrent Financing. For further information please contact Mr. Eric Beckwitt CEO at (604) 899 4081
Management and Board of Directors of Resulting Issuer
Upon completion of the QT, all of the existing directors and officers of the Company will resign, and the directors of the Company will consist of Eric Beckwitt and four other nominees selected by Freightera and acceptable to the Exchange. Mr. Beckwitt will also be the Chief Executive Officer of the Company.
Eric Beckwitt is the founder, sole director and Chief Executive Officer of Freightera. He was the principal development team leader and patent holder of what has become the Freightera freight marketplace application. Mr. Beckwitt is a specialist in software development and business automation. He is an internationally recognized author and speaker on emissions reduction from freight transport. He wrote "A Green Future for Freight" in the 2016 and 2018 G7 Summit editions of Climate Change: The New Economy. He was a speaker at COP22, the UN Climate Change Conference in Marrakesh. He is the creator of North America's First Low Emission Freight Marketplace in cooperation with SmartWay and Natural Resources Canada. Mr. Beckwitt and/or Freightera have been featured in Forbes, Fortune, Inc. Magazine, NBC, ABC, and Entrepreneur, among over 300 news sites worldwide. He is the recipient of over 18 grants and awards, including the 2016 Technology Impact Award and 2019 Clean50 Award.
Further information with respect to the identity of each of the proposed directors and officers of the Company upon completion of the Transaction will be provided separately, once determined.
Trading in the common shares of the Company will remain halted and the shares are not expected to resume trading until the Transaction has been completed, or until the Exchange receives the requisite documentation to resume trading. If the Transaction is completed, the Company expects to be listed on the Exchange as a technology issuer.
Completion of the Qualifying Transaction is subject to approval by the TSX Venture Exchange ("Exchange"). Freightera and Subco will require shareholder approval for the amalgamation, and the Company will require shareholder approval for the Consolidation and proposed name change.
About OV2 Investment 1
The Company is a CPC. It has not commenced commercial operations and has no assets other than a minimum amount of cash. Except as specifically contemplated in the CPC policies of the TSXV, until Completion of the Qualifying Transaction, the Company will not carry on any business other than the identification and evaluation of assets or businesses with a view to completing a proposed Qualifying Transaction.
Forward Looking Information
This news release contains statements about the Company's expectations regarding the completion of the application for listing and the commencement of trading on the TSXV that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as final listing approval from the TSXV. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include failure to fulfill conditions of listing on the TSXV and inability to obtain required regulatory approvals. The forward-looking statements contained in this press release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
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.
SOURCE OV2 Investment 1 Inc.
For further information: Mr. Adam Adamou, Chief Financial Officer, OV2 Investment 1, Tel. (416) 937-1138; Mr. Eric Beckwitt, Chief Executive Officer, Freightera Logistics Inc, Tel. (604) 899 4081