(September 26 – 09:50) – In an unconventional merger, online investment dealer Groome Capital.com Securities Inc. is merging with former chemicals firm, Canhorn Chemical Corp.
The firms have entered into a Letter of Intent to merge Groome, which is a full-service investment dealer specializing in online trading, proprietary research, IPO’s and private placements, with Canhorn. Canhorn shares have been suspended from the Toronto Stock Exchange since last December for failing to meet continued listing requirements.
In the past nine months Canhorn has disposed of its operating business and the majority of its other assets in the chemicals and fertilizer businesses, to eliminate debt. It previously signed a letter of intent to acquire ZCAN Solutions Inc. of Vancouver, a Canadian franchiser of ZLand.com, a provider of Internet-hosted e-business solutions. That deal did not proceed. Canhorn earned $755,935 in its most recent quarter from the sales of subsidiaries and mining claims.
Under the terms of this deal, Canhorn has agreed to consolidate its existing issued shares on a 10:1 basis. Canhorn shareholders will own approximately 1% of Groome after the deal.
The directors and management of the continuing company after the deal will be “designated by Groome”. The transaction is subject to the completion of due diligence by both firms, execution of a definitive agreement, regulatory, board of director and shareholder approval.
A more detailed description of the transaction will be provided in an information circular to be prepared in connection with a special meeting of Canhorn shareholders to be called to seek shareholder approval for the transaction.
-IE Staff