Dealnet Recommends Shareholders Tender to Premium Cash Offer from Simply Green

• Simply Green’s Offer was by far the highest bid in a comprehensive strategic review process
  
• Cash Offer is at a premium of 93% to the 90-day VWAP on the TSX-V for the period ending August 21, 2020

TORONTO, Sept. 17, 2020 (GLOBE NEWSWIRE) -- Dealnet Capital Corp. ("Dealnet" or the "Company") (TSX VENTURE: DLS) reminds shareholders to tender their Dealnet common shares (the “Common Shares”) by October 14, 2020 to the premium cash offer of $0.16 per Common Share (the “Offer”) from Simply Group Acquisition Corp. (“Simply Green”) which commenced on September 9, 2020 through the mailing of a take-over bid circular to Dealnet shareholders.

The Offer represents a premium of 33% to the closing price of the Common Shares on the TSX Venture Exchange (the “TSX-V”) on August 21, 2020 (the last trading day prior to the announcement of the Offer), a premium of 52% to the 30-day volume weighted average price (“VWAP”) on the TSX-V for the period ending August 21, 2020 and a premium of 93% to the 90-day VWAP on the TSX-V for the period ending August 21, 2020.

“The Offer to acquire Dealnet represents full and fair value for Dealnet shareholders and offers a significant premium compared to the price the Common Shares were trading at just a few months ago. We are pleased with the initial expressions of support the Offer has received from shareholders,” said Harold Bridge, Chairman of Dealnet. “The musings regarding Dealnet’s value from a dissident shareholder fly in the face of overwhelming evidence including a fairness opinion from a reputable investment bank. Given that Dealnet’s Common Shares have not traded above the Offer price, the market supports our view that the Offer represents a full and fair premium. Notwithstanding the successful turnaround of the business, there is significant risk that the Common Shares could return to their historical low trading prices if the Offer is not supported.”

As detailed in Dealnet’s directors’ circular dated September 9, 2020, the Company conducted an extensive review of strategic alternatives involving 53 potential purchasers. The Company received three en-bloc bids. Simply Green’s bid was the highest at each step of the process and was increased three times to the Offer level announced on August 24, 2020.

The Company notes that a dissident shareholder continues to make a number of baseless, inaccurate and misleading assertions and ad hominem attacks regarding Dealnet and its leadership. The Company is focused on completing the transaction with Simply Green and will not be responding to this dissident at this time, but reserves the right to do so in the future.

Shareholders who have additional questions regarding the Offer should contact Kingsdale Advisors, toll free in North America at 1-866-851-3214 or call collect outside North America at 416-867-2272 or by email at contactus@kingsdaleadvisors.com.

About Dealnet Capital Corp.

Dealnet is the parent company of subsidiaries operating in two market segments, consumer finance and call centre.  The Company operates in the consumer finance segment in Canada through EcoHome Financial Inc. (“EcoHome”) and its call centre segment under the One Contact banner (“One Contact”).

EcoHome is a specialty finance company serving the $20 billion Canadian home improvement finance market. EcoHome develops and supports consumer sales financing programs for approved dealers and distributors under agreements with original equipment manufacturers (OEMs) that supply a wide range of home improvement products to the retail market. Through a dealer network, EcoHome underwrites, originates, funds and services the prime quality loans and leases that homeowners need to finance the acquisition and installation of capital assets that improve the quality, comfort and safety of their homes.

One Contact offers customer support services to both EcoHome and third-party institutions across Canada and the U.S.

For additional information please visit www.sedar.com.

About Simply Group

With more than $750 million in assets acquired, Simply Group is providing consumers and businesses with financing solutions that afford them greater flexibility to improve their energy- efficiency and invest in the modernization of their residential, commercial and industrial properties and projects. Simply Group believes that its people are its greatest asset and is proud to be Great Place to Work-Certified since 2016. In 2020, Simply Group was named Best Business of the Year by the CanadianSME National Business Awards.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

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", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks, including the effects of Covid-19, and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.