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GuestLogix begins sale, investment process

February 23
2:54 AM 2016

Toronto-based GuestLogix Inc. has received court approval for executing sale and investment solicitation process. Canaccord Genuity Corp is acting as financial advisor to the company under the sale and investment solicitation process which will be executed in two phases. The Canadian company is a provider of onboard retail software solutions to the passenger travel industry.

Ontario Superior Court of Justice (Commercial List) has granted an order approving US$3 million interim facility to GuestLogix.  It'll be implemented under Companies Creditors Arrangement Act (CCAA). The objective of sale and investment solicitation process (SISP) is to attract maximum number of bids for acquisition of business or assets of the company. It also involves refinancing or capitalization of the company. 

Yahoo Finance states that parties, which want to participate in the SISP, are advised to review the SISP procedure. Canaccord Genuity Corp has been appointed as financial advisor to the company under SISP process. 

SISP procedure stipulates a procedure in which potential bidders can have access to or continue to have access to due diligence materials pertaining to the company and assets. Bidders, letters of interest (LoI) and bids can be classified as Phase-1 qualified bidders and Phase-2 qualified bidders, qualified LoIs and qualified bids. 

GuestLogix is a leading player in comprehensive merchandizing, payment and business intelligence technology. As part of CCAA proceedings, the company operations will continue as usual. The obligations to employees, suppliers and customers will also continue on ongoing basis, while the management will be sole responsible for day-to-day operations, according to Market Wired.

Meanwhile, the GuestLogix's stock price was trading at $0.095 a share. The share price fell 87.65 percent since 15 July 2015. Stock is underperformer by 77.93 percent when compared to S&P 500 index. The company's market capitalization stands at $12.21 million. The Canadian company is providing onboard retail software solutions to the passenger travel industry. 

The onboard store technology and merchandizing solutions from GuestLogix help airlines, rail operators and other travel operators manage onboard retail environment. It also enables customers in the travel industry to manage ancillary revenue transactions in secure and compliant manner, as reported by Sonoran Weekly Review. GuestLogix is suffering from negative earnings. 

GuestLogix, Canaccord, the Monitor and the court will approve the bidders under SISP procedure. Phase-1 bidders will have to submit non-binding letters of interest adhering to SISP procedure to Canaccord and the Monitor by 18 March 2016. Phase-2 qualified bidders need to submit qualified bids to Canaccord and the Monitor by 31 March 2016. The qualified bids must be binding and irrevocable offers to takeover the company or assets or business or for restructuring. 

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