IPC Financial Network Inc. has entered into an agreement for the acquisition of Quebec-based KPLV Financial Planning Inc., KPLV Securities Inc. and KPLV Insurance Inc.

The base purchase price is $1,938,363 and will be satisfied by the issuance of 757,173 Preferred Shares, Series 12 at a deemed share price of $2.56. In addition, an upward purchase price adjustment of up to $1,107,637, payable by the issuance of 432,670 Preferred Shares, Series 12 at a deemed share price of $2.56, is available to the shareholders of KPLV Group, for a total maximum base purchase price of $3,046,000.

The parties to this transaction have agreed that the securities issued will be held in escrow. They are to be released in three equal instalments on the first, second and third anniversaries of closing. Upon their release from escrow, the Preferred Shares, Series 12 will be converted automatically into common shares of IPC, subject to the achievement of performance targets. An earn-out provision to a maximum amount of $4,500,000 will be payable to the shareholders of KPLV Group if the firms achieve recruitment performance targets over the three-year period following closing.

Payment of this additional amount will be in common shares of the Company and the deemed share price will be the higher of $2.56 and the average trading price of the Company’s common shares during the fifteen business days immediately prior to the third anniversary of closing. Therefore, the maximum number of shares that will be issued pursuant to the earn-out provision is 1,757,812 common shares.