The following table summarizes the fair value of consideration paid on the acquisition date and the allocation of the purchase price to the assets and liabilities acquired.


Consideration		$
Cash consideration on closing		101,111
Net working capital adjustment		447
Cash paid relating to debt		2,581
Cash held in escrow for working capital		1,000
Cash held in escrow for PPP loan forgiveness		4,253
Additional consideration for tax		13,269
Common shares issued on closing		66,873
Common shares reserved in escrow for indemnification		2,129
Common shares reserved for future issuance		189,973
		381,636


Purchase price allocation		$
Cash		3,830
Trade receivables		5,562
Inventories		1,448
Property and equipment		5,335
Right-of-use assets		2,584
Other current assets		1,496
Accounts payable and accrued liabilities		(8,325)
Contract liabilities		(5,532)
Other non-current liabilities		(925)
Lease obligations on right-of-use assets		(2,663)
Intangible assets		169,200
Deferred income tax liability		(25,476)
Goodwill		235,102
		381,636

20.

Business combinations (continued)

The Company incurred estimated transaction costs in the amount of $3,888 which were expensed and included in the consolidated statements of income (loss) and comprehensive income (loss) for the year ended June 30, 2021. These costs were including 18,456 common shares valued at $330, which were issued at closing to an advisor. The acquisition has been accounted for using the acquisition method under IFRS 3, Business Combinations.

On July 16, 2021, the Company purchased certain assets of M2 Telecom LLC. M2 was a channel partner for the Company’s wholesale Trunking as a Service “TaaS” business and the Company has taken over the sales team. The Company paid an aggregate purchase price of $2.0 million which was allocated as goodwill (Note 12).

On March 28, 2022, the Company acquired NetFortris Corporation. The Company paid an aggregate purchase price of $64,820 net of a net working capital adjustment of ($8,942), and comprised of $50,418 cash consideration, 1,494,536 common shares at a fair value of $16,801. The Company issued 1,494,536 common shares including 327,241 shares representing a holdback for indemnification purposes on closing of the acquisition. The Company estimates that a further payment of $6,543 will be paid as part of an earn out that is up to $12,000 if certain operating targets are met. The Company incurred estimated transaction costs in the amount of $2,939 which were expensed and included in the consolidated statements of income (loss) and comprehensive income (loss) for the three month period ended March 31, 2022. The acquisition has been accounted for using the acquisition method under IFRS 3, Business Combinations.

The following table summarizes the fair value of consideration paid on the acquisition date and the preliminary allocation of the purchase price to the assets and liabilities acquired.


Consideration		$
Cash consideration on closing		43,868
Net working capital adjustment		(8,942)
Cash held in escrow for working capital		350
Cash held in escrow for telecom taxes		3,400
Cash held in escrow for indemnification		2,800
Additional consideration for earn out		6,543
Common shares issued on closing		13,122
Common shares reserved in escrow for indemnification		3,679
		64,820

20.Business combinations (contniued)


Purchase price allocation		$
Cash		1,706
Trade receivables		1,822
Inventories		416
Property and equipment		4,172
Right-of-use assets		3,277
Other current assets		796
Other non-current assets		370
Deferred income tax asset		11,091
Accounts payable and accrued liabilities		(9,442)
Sales tax payable		(5,506)
Contract liabilities		(1,666)
Lease obligations on right-of-use assets		(3,277)
Other non-current liabilities		(235)
Intangible assets		29,000
Goodwill		32,296
		64,820