Annual report pursuant to Section 13 and 15(d)

14. Contingent Purchase Consideration

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14. Contingent Purchase Consideration
12 Months Ended
Dec. 31, 2021
Disclosure 14.Contingent Purchase Consideration Abstract  
14. Contingent Purchase Consideration

14. Contingent Purchase Consideration

 

In terms of the acquisition of USB disclosed in Note 3 above, the Sellers will have an opportunity to receive up to an additional $38,000,000 plus a potential premium of 10% (or $3,800,000) based upon achievement of stated adjusted cumulative EBITDA milestones during the next four years, payable 50% in cash and 50% in the Company’s stock at a price equal to volume weighted average price of the company’s common stock for the 90 consecutive trading days preceding January 1 of each subsequent fiscal year for the duration of the earnout period ending December 31, 2025, subject to obtaining shareholder approval, if the aggregate number of shares to be issued pursuant to the Purchase Agreement exceeds 4,401,020 and with a cap of 5,065,000 on the aggregate number of shares to be issued. Any excess not approved by shareholders or exceeding the cap will be paid in cash.

 

    December 31, 2021
Opening balance as of January 1,   —    
Contingent purchase consideration measured on the acquisition of USB   24,716,957  
Settled by the issuance of common shares     —    
Repayment in cash     —    
Changes in fair value     (11,857,558
Closing balance as of December 31,   $ 12,859,399