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TORONTO, ONTARIO--(Marketwired - Jan 19, 2016) - Quantum International Income Corp. (the "Corporation") (TSX VENTURE:QIC)(TSX VENTURE:QIC.U) announces today that it has entered into a definitive agreement with DGAT Partners, LLC ("DGAT") and certain other affiliates, pursuant to which the Corporation will sell, and affiliates of DGAT will acquire, the entirety of the Corporation's 100% indirect interest in DA Management NJ Inc., the subsidiary through which the Corporation indirectly administered anesthesia services at its Centers for Special Surgery, LLC ("CSS") subsidiary and other locations. Through its wholly-owned subsidiary Quantum Anesthesia Management Corp., the Corporation will receive, in consideration for the sale, a cash payment of US$600,000 and the irrevocable option to cancel, for no additional consideration payable, 9,000,000 common shares of the Corporation which had been previously issued to affiliates of DGAT. The Corporation and the purchasers have further agreed to reduce the cash portion payable to the Corporation by US$362,000, which reduction reflects an aggregate amount the purchasers have agreed to pay to satisfy certain expenses of CSS that would otherwise have been ultimately funded by the Corporation. Affiliates of the purchasers are members of the Board of Directors of CSS and as such are considered Non-Arm's Length Parties of the Corporation under TSX Venture Exchange ("TSXV") rules. The completion of the transaction is subject to receipt by the Corporation of final approval by the TSX Venture Exchange.
"Quantum continues to downsize operations and cut costs as a part of our restructuring initiatives. We are singularly focused on our growth and profitability in our surgery centre operations," stated Manu Sekhri, Chief Executive Officer.
Separately, the Corporation announces today that Geoff Boothe has resigned from the Board of Directors, effective immediately. The Corporation further announces that Roy Booth, Chief Financial Officer has resigned from the Corporation effective February 15, 2016. Mr. Boothe was first elected to the Board in November 2013 while Mr. Booth joined the Corporation as CFO in March 2014.
"Quantum thanks Messrs. Booth and Boothe for their service to the company during its formative phase," continued Mr. Sekhri. "Their contributions were greatly valued and we wish them well in their future endeavours."
More information on Quantum International Income Corp. is available at www.quantumincomecorp.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This release contains certain information which, as presented, constitutes "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as "expect" and "intend", statements that an action or event "may" or "will" be taken or occur, or other similar expressions and includes, but is not limited to, statements about the completion of the sale of the Corporation's anesthesia business, including but not limited to the treatment of the cash consideration therefor and cancellation of any common shares in consideration therefor. These statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Corporation to control or predict, and which may cause Quantum's actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, risks related to the inability by Quantum to acquire its own common shares for cancellation, as well as other factors discussed in the Corporation's annual information form dated July 23, 2015, (the "Annual Information Form") and the Corporation's final short form prospectus supplement dated July 21, 2015, which are available on SEDAR under Quantum's profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the Annual Information and Prospectus, and as otherwise disclosed from time to time on SEDAR under Quantum's profile at www.sedar.com.
Unless otherwise specified in this press release, information contained in this press release is current as of the date of this press release. Unless otherwise specified, all dollar amounts herein refer to Canadian dollars. The Corporation undertakes no obligation to update forward-looking statements except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.