Calgary, Alberta--(Newsfile Corp. - June 26, 2024) - Rumbu Holdings Ltd. (TSXV: RMB) ("Rumbu" or the "Company"), is pleased to announce that it has completed its previously announced financing with the Bank of Montreal for aggregate proceeds of $3,540,000 CDN. In addition, the Company announces that it has entered into a transaction and a new partnership with the existing ownership of Affinity Funeral Service Ltd. ("Affinity") with funeral homes in Drayton Valley and Whitecourt, Alberta (the "Transaction"). In the Transaction, Rumbu purchased all of the shares of one partner who is retiring, purchased the balance of the shares from the other two (2) partners and entered into a partnership arrangement with the two (2) remaining partners, who are the full time Funeral Directors and manage the business of Affinity. Rumbu purchased 80% of the issued and outstanding shares of Affinity for aggregate consideration of $1,200,000 CDN with a cash payout at Closing of $850,000 CDN and the balance satisfied by the issuance of Promissory Notes to the Vendors for an aggregate amount of $350,000 CDN. The Promissory Notes are repayable in five (5) years from the Closing Date of the Transaction and with interest at the rate of 3% paid annually. The new partnership supports Rumbu's commitment to acquiring, partnering, managing and operating funeral homes, cemeteries, crematoriums and aquation facilities in Western Canada. With the aging ownership in funeral service business, Rumbu plans to lead the way in assisting funeral home owners to transition their businesses to current employees or aspiring funeral directors who are looking to operate in rural or mid market communities. This will allow Rumbu to maintain continuity and continue to provide quality Funeral Services in these communities.
About Rumbu
Rumbu is a publicly traded Funeral Service, Memorial and Death Care Company trading on the TSX Venture Exchange under the trading symbol RMB. Rumbu operates in the funeral home business in Western Canada and provides funeral and cremation related services to the public in its market area. The Company will provide a vehicle to expand its funeral home business in Western Canada through the acquisition of additional funeral homes and partnering with owners of funeral homes.
Neither the 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.
For further information concerning this press release, please contact:
Ross O. Drysdale, Chairman
Rumbu Holdings Ltd.
Telephone: (403) 585-3737
Email: ross@drysdalelaw.com
Cautionary and Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward- looking statements. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214396
SOURCE: Rumbu Holdings Ltd.
