Chesswood Group entered into a definitive agreement to sell its EcoHome Financial subsidiary to Dealnet Capital for a purchase price of approximately $35 million.

Of the $35 million purchase price, $30 million will be paid in cash and Dealnet will issue to Chesswood 5,176,876 common shares of Dealnet and a $2 million convertible note which will mature in two years and provide for interest at 6% per annum and the right of Chesswood to convert in whole or in part at any time to acquire additional common shares of Dealnet at a conversion price of $0.64. Closing of the transaction is subject to customary conditions and regulatory and third-party consents, and is expected to occur in February.

“The sale of EcoHome reflects our decision to become singularly focused on our commercial finance businesses and the many growth opportunities they offer, while generating a significant return for our shareholders on the sale of EcoHome, in less than one year of our ownership,” said Barry Shafran, Chesswood’s president and CEO. “In addition, through our resulting share ownership in Dealnet, we will continue to benefit from Dealnet’s expansion, including growth at EcoHome.”

Chesswood Group Limited is a dividend-paying financial services company with operating businesses in both Canada and the U.S., including its North-American equipment finance businesses Pawnee Leasing and Blue Chip Leasing.