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CALGARY, Alberta and TORONTO, Jan. 27, 2022 (GLOBE NEWSWIRE) -- Magnetic North Acquisition Corp. (TSXV: MNC; MNC.PR.A) (“Magnetic North” or the “Company”) is pleased to provide an operational update on investee company, Ignite Alliance Corp. (“Ignite” or “Ignite Technology”) as Ignite is projected to increase revenue in 2022 to approximately $20 million.
In 2021, the Magnetic North team worked on providing growth opportunities for Ignite which included strategic acquisition plans. On December 9, 2021 Ignite acquired Calgary, Alberta based information technology firm NBi Solutions. According to Ignite management’s internal projections revenues are expected to increase to approximately $20 million for the fiscal year ending December 31st, 2022, up from approximately $11.6 million in the previous year. Ignite’s net income is expected to grow to approximately $1.0 million by fiscal year end December 2022. The Magnetic North team played an integral role in the sourcing, negotiating, and closing of the NBi acquisition and played a key role in identifying strategic investments for growth. Magnetic did not receive any fees for the NBi transaction.
The addition of NBi Solutions to the Ignite team has facilitated the launch of Ignite’s newest full-service offering - Ignite Solutions. The acquisition includes managed IT services, cloud hosting, extended assessments and more, which widens the breadth of offering to Ignite’s existing Collaboration and Security customers across Canada, while also providing a model for new customer growth.
Over the past decade, Andrew Osis, Co-CEO of Magnetic North has contributed directly to Ignite Technology as an advisor and more recently in his capacity as Chief Financial Officer (“CFO”). As CFO, Mr. Osis has advised on strategy, finance and operations, growing Ignite from a local start-up firm, to over 75 people across Canada. As a result of this significant growth, a number of follow-on transactions are being evaluated in connection with accelerating internal growth to meet customer demand.
Andrew Osis, Co-CEO of Magnetic North stated, “We believe the completion of Ignite’s acquisition of NBi Solutions provides an example of how the Magnetic North team is building value for shareholders by applying capital and management excellence over the long-term. It is critically important to our success that our model provide expertise, capability, knowledge, network and the ability to augment management teams.”
Steven Taylor, President and CEO of Ignite Technology stated, “working with the Magnetic North team provided Ignite with a strategic skill set required to expand our business. Managed IT services, cloud hosting, collaboration and security are all real problems we are solving for businesses across Canada and COVID-19 has accelerated our business opportunities. What we needed was the ability to expand our business in order to capitalize on these opportunities and the Magnetic North team played a significant role in making that happen.”
Magnetic North will continue to work with Ignite in 2022 with the goal of expanding their business through internal growth, and through targeted acquisitions. Magnetic North may have the opportunity during 2022 to invest further capital to increase the Company’s position in Ignite. Magnetic currently has a small position in the common shares of ignite, representing less than 1% of the outstanding shares.
About Magnetic North Acquisition Corp.
Magnetic North invests and manages businesses on behalf of its shareholders and believes that capital alone does not always lead to success. With offices in Calgary and Toronto, our experienced management team applies its considerable management, operations and capital markets expertise to ensure its investee companies are as successful as possible for shareholders. Magnetic North common shares and preferred shares trade on the TSX Venture Exchange under the stock symbol MNC and MNC.PR.A, respectively. The TSX Venture announced that Magnetic North is a “2021 TSX Venture 50” recipient. For more information about Magnetic North, visit its website at www.magneticnac.com. Magnetic North’s securities filings can also be accessed at www.sedar.com.
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 newsrelease.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, or operations that is prospective in nature, and includes future-oriented information about the future revenue to be generated by Ignite, each of which is based on a number of assumptions and subject to various risks.
The Company has made certain material assumptions, including but not limited to: continuation of prevailing market conditions; lack of significant negative impacts from general business, economic, competitive, political and social uncertainties; and the ability of Ignite to execute and achieve its business objectives and to meet its revenue projections, to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include but are not limited to: those implied by the assumptions discussed above; adverse market conditions; reliance on key and qualified personnel; and regulatory and other risks associated with the industries in which the Company's portfolio companies (including Ignite) operate, in general. The Company cautions that the foregoing list of material risk factors and assumptions is not exhaustive.
The Company assumes no obligation to update or revise the forward-looking information in this news release unless it is required to do so under Canadian securities legislation.
