HIRE Technologies (OTCMKTS:HIRRF) Stock On Radar: Announces the Sale of Its Real Estate and Construction Vertical

HIRE Technologies (OTCMKTS:HIRRF) announced on October 7, 2022, about entering into a definitive agreement to divest Vancouver-based Taylor Ryan Inc. to the vendors in the original transaction on October 7, 2022. Due to this transaction, HIRE Technologies extinguishes a 2023 capital commitment of $9.7 million, and expects to record a gain on sale in Q4 of 2022.

Market Stats     

On Friday, HIRRF stock ended flat at $0.0260 with more than 1.5K shares, compared to its average volume of 388 shares. The stock moved within a range of $0.0260 – 0.0260 after opening trading at $0.260.

HIRE Technologies Announces the Sale of Its Real Estate and Construction Vertical

HIRE Technologies also appoints Charlie Cooper to succeed Dan Teguh as Chief Financial Officer, effective from October 7, 2022. Mr. Teguh stays on until October 14, 2022 to facilitate the transition of his duties. Mr. Cooper has vast expertise as a CFO, with several years of international business and public company experience in guiding professional services companies.

The transaction closed on October 7, 2022 and is cashless. All purchasers got 100% of the shares of Taylor Ryan Inc., and will receive transitional services from HIRE. In Q4 of 2022, a gain on sale will be recorded, along with an estimated reduction to current liabilities of $7.9 million in contingent remuneration and an estimated reduction in net assets of $4.8 million.

Before closing of the transaction, the company purchased certain receivables of Taylor Ryan Inc. in exchange for a $1.0 million secured 8% promissory note. The promissory note will rank junior to the Company’s senior secured lending facilities.