Eddy Smart Home Solutions Ltd. (TSXV:EDY) entered into a definitive agreement to acquire Reed Controls Inc. for CAD 5.3 million on March 24, 2022. The total consideration will be paid in common shares of Eddy at a per share price of CAD 0.60 per share with an estimated 10,732,750 common shares in the capital stock. The total consideration will be paid in common shares of Eddy at a per share price of CAD 0.60 per share with an estimated 12,266,000 shares being issued. The share consideration will be subject to a twenty-four month lock-up period, provided that the share consideration will be released from the lock-up requirements on the first business day following each of the four, six, nine, twelve, fifteen, eighteen and twenty-one month anniversaries of the closing date, and such other terms, as may be imposed by the TSXV. The share consideration will also be subject to a statutory four month hold period. Upon closing of the transaction, Reed's founders Avi Yurman and Adam Bartman will join Eddy's leadership team, and Chief Marketing Officer Avishai Moscovich will join the Sales and Marketing team in a senior role as Vice President of Business Development. Reed has also been granted a right to nominate a director to serve on Eddy's board of directors, and Avi Yurman will be appointed as a Board observer. Closing of the transaction remains subject to approval by the TSX Venture Exchange, execution of non-competition agreement, execution of employment agreement, lock-up agreement, execution of escrow agreement and other customary closing conditions. Transaction is expected to close within the next 45 days. As of May 2, 2022, the outside closing date was extended to May 17, 2022. Jeff Mikelberg of Cassels Brock and Blackwell LLP and Debi Sutin of Gowling WLG (Canada) LLP acted as legal advisor to Eddy Smart.

Eddy Smart Home Solutions Ltd. (TSXV:EDY) completed the acquisition of Reed Controls Inc. on May 4, 2022. The total consideration was paid in common shares of Eddy at a per share price of CAD 0.60 per share with an estimated 12,266,000 shares being issued.