Command Center Consummates Merger with Hire Quest
July 16 2019 - 12:40PM
Business Wire
Combination Creates Meaningful Scale and
Reinforces Leadership Position;
Combined Company to Transition to a Fully
Franchised Model
Command Center, Inc. (Nasdaq: CCNI), a national provider of
on-demand and temporary staffing solutions, today announced the
closing of its merger agreement (“Merger Agreement”) with Hire
Quest Holdings, LLC, operating as Trojan Labor and Acrux Staffing,
a privately held provider of blue collar, light industrial and
administrative staffing, in an all-stock transaction
Under terms of the agreement, Hire Quest has been merged with a
subsidiary of Command Center. The combined company will continue to
operate under the Command Center name immediately following the
merger, although in the future the combined organization may be
renamed HireQuest, Inc. following notice and necessary filings. As
approved by shareholders in the Company’s annual shareholder
meeting on July 10, Command Center has issued 9,837,336 shares of
the Company’s common stock to Hire Quest’s security holders,
representing approximately 68% of the Company’s outstanding stock.
Rick Hermanns, Chief Executive Officer of Hire Quest Holdings, LLC,
has more than 28 years’ experience in the temporary labor and
staffing industry and will serve as Chief Executive Officer of the
combined entity. Mr. Hermanns will beneficially own approximately
40% of the Company. Subsequent to the closing of this transaction
and prior to the completion of its current outstanding Tender, the
Company had 14,466,667 common shares issued and outstanding.
Mr. Hermanns commented, “This is an exciting new day for Hire
Quest and its franchise owners, as well as for Command Center, its
customers, employees, and shareholders. This combination creates a
strong organization with a national footprint and the financial
resources to lead the industry. The increased reach of our
operations will aid our ability to effectively compete for major
national accounts, helping drive customer diversity and sustainable
growth across the network.”
Rimmy Malhotra, Chairman of Command Center, commented,
“We thank our shareholders for their patience as the Board
of Directors searched for the optimal path forward. We believe this
combination represents an exciting new trajectory for us and now
look forward to integrating the two companies.”
D.A. Davidson served as the investment banker and advisor to
Command Center. Raymond James served as the investment banker and
advisor to Hire Quest. In addition, BB&T has provided Command
Center and its subsidiaries with a $30 million credit facility.
Additional details about the facility will be included in a filing
on Form 8-K with the SEC.
Important Cautions Regarding Forward-Looking
Statements
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks, including, but not limited to, national,
regional and local economic conditions, the availability of
workers’ compensation insurance coverage, the availability of
capital and suitable financing for the company’s activities, the
ability to attract, develop and retain qualified store managers and
other personnel, product and service demand and acceptance, changes
in technology, the impact of competition and pricing, government
regulation, and other risks set forth in our most recent reports on
Forms 10-K and 10-Q filed with the Securities and Exchange
Commission (“SEC”), copies of which are available on our website at
www.commandonline.com and the SEC website at www.sec.gov. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the company, are expressly qualified by
these cautionary statements and any other cautionary statements
which may accompany the forward-looking statements. In addition,
the company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20190716005825/en/
Company Contact: Command
Center, Inc. Cory Smith, CFO (866) 464-5844 Email:
cory.smith@commandonline.com Investor
Relations Contact: Hayden IR Brett Maas 646-536-7331
Email: brett@haydenir.com
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