Emerge Commerce Sells WholesalePet To Tiny For US$9.25 Million
Emerge Commerce (TSXV: ECOM) continued to sell off assets this morning in an effort to clean up its balance sheet.
The company has sold off its WholesalePet subsidiary for US$9.25 million in cash, the proceeds of which will be used to pay down a portion of an outstanding senior credit facility. The credit facility, originally sized at C$25 million, currently sits at $15.85 million, a figure which Emerge says will drop to $5.85 million once the sale of WholesalePet closes.
The subsidiary is being sold to Tiny Fund 1, LP, a fund established by Tiny Ltd (TSXV: TINY), a holding company designed to acquire businesses from founders in what it refers to as a “friendly and simple process” that takes 30 days or less.
Post-transaction, Emerge will be reduced to two main verticals, grocery and golf, with its operations to be conducted under the banners of truLOCAL, Carnivore Club, UnderPar and JustGoldStuff.
Emerge Commerce last traded at $0.04 on the TSX Venture.
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