Highlights of RediShred's Q1 Financial Results
- Completed Qualifying Transaction as a capital pool company via the purchase of Professional Shredding Corporation on March 17, 2008. PSC owns the trademarks and systems associated with the brand name PROSHRED in the United States and internationally outside of Canada
- Successfully closed a private placement of $5 Million
- RediShred paid an aggregate purchase price of $5.3 million (subject to customary adjustments) for PSC. The purchase price was paid with a combination of $3.6 million in cash and 3,269,230 common shares from treasury of RediShred at a deemed price of $0.52 per Common Share.
- Royalty revenue for the first quarter was $36,567 for the period of March 17, 2008 to March 31, 2008 (11 business days). The royalty revenue was generated by franchisees of the PROSHRED franchise system, these revenues are 100% generated in US Dollars.
Management Comment
"We are pleased to have completed the Qualifying Transaction with PSC and simultaneously have raised $5 Million", noted John Prittie, new President and CEO of Redishred. "We are excited at the prospect of growing the Proshred brand throughout the United States and beyond".
Redishred, In addition to operating the Proshred franchising operations, plans to grow its business through the acquisition and establishment of Company owned document destruction businesses that generate stable and recurring cash flow through a scheduled client base, continuous paper recycling, and concurrent unscheduled shredding service. In addition, the Company plans to implement internal growth strategies, such as expanding services to residential customers, home-based businesses and continuing to develop complementary services around proprietary product and electronic materials destruction; and external growth strategies, such as expanding internationally through master franchising. -- www.cnxmarketlink.com
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