(March 30 – 14:20 ET) – IPC Financial Network Inc. has completed the acquisition of Avalon Financial Services Corp., a mutual fund dealer in Toronto, with 80 financial advisors in Ontario, Newfoundland and Saskatchewan and Avalon Securities Corp., a securities dealer based in Toronto with 19 registered representatives. IPC and the shareholders of Avalon Insurance Corp. mutually agreed that AIC would not form part of the acquisition as was originally announced.

The purchase price for the acquisition of AFSC and ASC, subject to achieving performance targets, consists of 1,038,960 preferred shares series 7 in the capital of IPC at a deemed price of $2.62 and the payment of $2,560,000.00 in cash.

In addition, IPC has purchased the books of business of several individual financial advisors of AFSC and ASC for consideration of 366,849 preferred shares series 8 at a deemed price of $3.08 and the payment of $187,568.00 in cash.

The parties to these transactions have agreed that the securities be issued on closing and held in escrow. They are to be released in three installments on the first, second and third anniversary of the closing of the acquisition. Both series of preferred shares are convertible automatically into common shares of IPC upon their release from escrow.

“Avalon is extremely delighted to be joining IPC. Throughout the due diligence period, we were impressed by the calibre and ethics of IPC’s management team. Their business plan and the infrastructure being constructed to support it will carry our financial planners and clients to the next level. We certainly feel we have joined the next leader in the independent financial services field as the products and services offered by IPC are built around the financial planner,” says Greg Pietras CEO of Avalon Financial Services
Corp. and Avalon Securities Corp.
-IE Staff