Dr. Phone Fix closes Geebo acquisition

Executive Summary

• Dr. Phone Fix Canada Corp. completed the acquisition of substantially all business assets of Geebo Device Repair Inc., a mobile device repair chain with six retail locations in Nova Scotia, marking a strategic expansion into Atlantic Canada.
• The transaction involves a base purchase price of $1.35 million plus the value of saleable inventory, funded through a mix of cash, a vendor takeback note, and equity issuance.
• The company issued approximately 4.37 million common shares to Geebo, which are held in escrow, while Geebo’s existing team and management will remain with the business to ensure operational continuity.

Key Details

• Transaction Structure: Asset purchase agreement for substantially all business assets of Geebo Device Repair Inc.
• Assets Acquired: Six operating retail service locations in Nova Scotia, one operating facility, and leases with optionality for future expansion.
• Total Consideration: Base consideration of $1.35 million (subject to customary adjustments) plus the value of saleable inventory at closing.
• Funding Sources:
  • $600,000 in cash.
  • Vendor takeback promissory note of $250,000.
  • Issuance of common shares of Dr. Phone Fix.
• Equity Issuance Details:
  • Total consideration shares issued: 4,371,256.
  • Breakdown: 2,994,011 shares valued at $500,000 and 1,377,245 shares valued at the closing value of purchased saleable inventory.
  • Valuation Basis: Determined using the 21-day volume-weighted average trading price (VWAP) on the TSX Venture Exchange, calculated at $0.167 per share.
  • Escrow: All consideration shares placed into escrow and released per a customary escrow agreement.
  • Hold Period: Subject to a statutory hold period of four months and one day.
• Strategic Impact: Expands Dr. Phone Fix’s national footprint, adds OEM-certified repair capabilities, and strengthens insurance partner relationships.
• Future Outlook: CEO Piyush Sawhney stated the company aims to expand from approximately 35 corporate locations to more than 70 stores nationwide within the next 12 to 18 months.

Notable Quotes

• "This is a major milestone for Dr. Phone Fix and an important step forward in our national expansion strategy... With this acquisition, we are officially entering Atlantic Canada with an established regional platform, a strong and loyal customer base, and a dedicated team that will help accelerate our growth coast to coast." — Piyush Sawhney, Founder and CEO
• "Closing this transaction immediately strengthens our national footprint, expands our OEM-certified repair capabilities, enhances insurance partner relationships and supports our commitment to sustainable device care practices. With this foundation in place, Dr. Phone Fix is well positioned to scale meaningfully as we advance our goal of expanding from approximately 35 corporate locations to more than 70 stores nationwide within the next 12 to 18 months." — Piyush Sawhney, Founder and CEO