Puget Technologies, Inc. entered into a letter of intent to acquire 50% stake in D & D Rehab Center, Inc.
August 10, 2021
Share
Puget Technologies, Inc. (OTCPK:PUGE) entered into a letter of intent to acquire 50% stake in D & D Rehab Center, Inc. on August 11, 2021. As proposed, Puget would acquire D & D in two stages, first, a 50% interest in exchange for $1.5 million in cash equivalents and $1.5 million in unregistered shares of Puget's Class B Convertible Preferred Stock, $0.001 par value, and second, with an option to acquire the balance of D & D's securities at the same price and comparable terms within one year after the initial closing. In addition to the Puget shares received by the former D & D equity holders, during the initial two years following the proposed acquisition, the D & D subsidiary would be entitled to receive up to an additional $0.1 million in Puget Common Stock, $0.001 par value, based on attaining net pre-tax profit performance goals, currently envisioned to be $2 million for the calendar year ended December 31, 2022, and $3 million for the calendar year ended December 31, 2023. Puget expects to fund the acquisition through a second stage private placement. D & D's total revenues for the calendar years ended December 31, 2020 was $3.6 million, with profits of $0.25 million. The parties intend to enter into a binding agreement following due diligence, legal consultations, and regulatory approvals with a potential closing by the end of the 2021 calendar year.
Puget Technologies, Inc. is a holding company. The Company is focused on acquisitions, strategic investment strategies and operational support. The Company intends to provide a one-stop shop for companies who need access to both capital and growth resources. The Companyâs investment focus ranges from traditional industries, such as healthcare that are ripe for business models to markets that solve societal problems, such as climate change.