Avalon signs letter of intent to sell ISP business
Ottawa-based Avalon Works Corp. has signed a letter of intent to sell its wholly owned subsidiary 1085083 Ontario Inc. to Cypersurf Corp. of Calgary for $2.5 million. The numbered company owns and operates Avalon’s Internet service provider business under the name Information Gateway Services. The price tag will be plus or minus adjustments for net working capital as at February 28, and will be paid in a $1.5 million installment on closing and $1 million within 60 days of closing. The transaction, if completed, represents a disposition of about 50% of the assets of the Avalon. The deal, announced March 10, is subject to receipt of shareholder and regulatory approval as well as certain due diligence. "This transaction is in line with our new strategy of redeploying and focusing our resources in a single business section, namely electronic service delivery," said Avalon chair and CEO Jirka Danek in a media release.