We are pleased to announce Wasaya Group ("Wasaya"), its shareholders and Exchange Income Corporation ("EIC") (TSX:EIF) have entered into an agreement to partner whereby EIC will both recapitalize Wasaya and the Wasaya shareholders will exchange a portion of their interests in Wasaya for shares of EIC. These transactions, together with anticipated growth capital, are expected to be approximately $25 million through a combination of debt and equity. This partnership will enhance the level of service in Northern Ontario and benefit customers in their communities.
"The partnership provides Wasaya a unique opportunity for long term sustainability and growth together with a tremendously experienced partner delivering to Wasaya buying power and operational efficiencies such as EIC's heavy maintenance capabilities and its centralized Charter Connexions Group, just to name a few," said Michael Rodyniuk, President and Chief Executive Officer of Wasaya. "The partnership with EIC will serve Wasaya and its First Nation owners well into the future. Through this partnership, Wasaya will be recapitalized successfully representing the final step of its new business plan, started over three years ago."
"We are proud to be investing in and helping to facilitate the growth of Wasaya," stated Mike Pyle, Chief Executive Officer of EIC. "A core principle of EIC is to invest in and partner with our First Nation stakeholders. The partnership with Wasaya allows us to further enhance and extend our First Nation relations." "Wasaya is a deep rooted valued brand and we are excited to become a part of their legacy," added Carmele Peter, President of EIC.
EIC has funded an initial investment in Wasaya with the remaining transactions expected to be completed within the first quarter of 2018.