Friday, 16 February 2007

HydraLogic Creates Presence in Florida with Strategic Acquisition

HydraLogic announced Friday that it has signed the final agreement to acquire Fort Lauderdale, Florida based M-Nix Systems of Broward County (MSBC) for USD $1.7 million in combined cash and common shares. Florida is one of the fastest-growing markets for mosquito and pest-related products. MSBC is a privately held mosquito and pest services company with well over 600 customers - one of the largest full-service providers of residential and commercial mosquito control in the greater Fort Lauderdale area.

The acquisition will serve as the growth platform and launching pad for the Company's Bug DeFence(TM) product line into the State of Florida.

The total purchase price for MSBC is USD $1.7 million, including a minimal payment of USD $50,000 and approximately USD $500,000 worth of common shares of HydraLogic to be issued at the time of closing. A two year promissory note for USD $650,000 will also be issued at this time bearing 7% interest. Six-months after the closing date, HydraLogic will issue another tranche of common shares worth approximately USD $500,000.

Given HydraLogic's current cash position, we were pleased to see that just a $50,000 cash payment is initially required to make this acquisition. Overall, we believe the terms of this acquisition are very favourable for HydraLogic and therefore for its shareholders as well. It is important to note that HydraLogic acquired M-Nix for $1.7 million - less than 1x its 2006 unaudited revenues of $1.95 million, which it expects to grow in 2007 under the Bug DeFence "Home Services" brand.

HydraLogic's 2007 plan includes acquisitions combined with strong organic growth in order to accelerate revenues.

Click here for the full release.