C.M. Oliver investing in tech provider

(November 19 – 09:40 ET) – A couple of Canada’s struggling brokerages are branching out. C.M. Oliver Inc. says it has a deal to merge with CUE Datawest Ltd., a Vancouver-based technology provider for credit unions. Dundee Wealth Management Inc. and Dundee Bancorp Inc. are buying Peelbrooke Capital Inc. – the former Marleau Lemire Inc.

C.M. Oliver is going to invest $10 million in Datawest to fund its expansion. CMO will exchange its shares for the common and preferred shares of Datawest. Datawest will become a wholly-owned subsidiary of CMO.

Earlier it sold its dealer businesses and was holding little more than cash and investments prior to this deal. CMO says it will also pay up to $3 million in additional shares to Datawest customers that agree to renew existing data service agreements for at least five years. Datawest’s management will subscribe for up to $1.25 million in shares too.

CMO says it will change its name to a name similar to CUE Datawest, although that has yet to be announced. The deal remains subject to due diligence checks by both parties, regulators and courts. The firms have scheduled shareholder meetings for January 18, 2000 to approve the transaction.

Meanwhile, the Toronto Stock Exchange has suspended the common shares of C.M. Oliver Inc. from trading effective immediately for failure to meet the continued listing requirements.