Brief: Command Center Announces Definitive Merger Agreement, Transition To Franchise Model

Hirequest

08/04/2019 21:06

April 8 (Reuters) - Command Center Inc  CCNI.O :
    * COMMAND CENTER ANNOUNCES DEFINITIVE MERGER AGREEMENT,
TRANSITION
TO FRANCHISE MODEL
    * COMMAND CENTER - AS CONSIDERATION FOR OWNERSHIP INTERESTS
OF
HIRE QUEST, WILL ISSUE APPROXIMATELY 9.8 MILLION COMMON SHARES
TO HIRE QUEST'S MEMBERS
    * COMMAND CENTER INC - RICK HERMANNS WILL SERVE AS CHIEF
EXECUTIVE
OFFICER OF COMBINED ENTITY.
    * COMMAND CENTER INC - AT DEAL CLOSING, THERE WILL BE ABOUT
14.5
MILLION COMMON SHARES, AND HIRE QUEST WILL BE ACQUIRED ON A
CASH-FREE/DEBT-FREE BASIS
    * COMMAND CENTER INC - INTENDS TO COMMENCE A SELF-TENDER
OFFER AT
$6.00 PER SHARE FOR UP TO 1.5 MILLION SHARES THAT IS CONTINGENT
ON CLOSING OF MERGER
    * COMMAND CENTER INC - HERMANNS WILL BENEFICIALLY OWN
APPROXIMATELY 39% OF COMMAND CENTER
    * COMMAND CENTER INC - CURRENT OWNERS OF HIRE QUEST WILL OWN
ABOUT
68% OF COMMAND CENTER, OF WHICH HIRE QUEST WILL BE A
WHOLLY-OWNED SUBSIDIARY
    * COMMAND CENTER INC - HIRE QUEST WILL BE ACQUIRED ON A
CASH-FREE/DEBT-FREE BASIS
    * COMMAND CENTER -  EXPECT THAT AS CO CONVERTS BRANCHES TO
INDEPENDENT FRANCHISES, ITS REVENUE WILL DECREASE BUT OPERATING
MARGINS, PROFITABILITY WILL RISE

Source text for Eikon:  ID:nBw9Q7yv5a 
Further company coverage:  CCNI.O 

 (Reuters.Briefs@thomsonreuters.com)