Hire Technologies Inc. (TSXV:HIRE.V), a Toronto-based staffing provider, entered into a definitive agreement to sell select assets from its Headhunters business unit to the vendors from whom it acquired The Headhunters Recruitment in September 2021.

Under the agreement, the acquirers will own the Headhunters’ trademark, domain name, email accounts and website and will be released from noncompete agreements.

As part of the deal, the acquirers will offer continued employment to all the workers of the business in addition to paying a nominal cash amount as the purchase price for the assets and assuming certain specified business liabilities.

The move will enable Hire Technologies to record a gain on sale in the first quarter of 2023, along with a C$4.7 million (US$3.4 million) estimated reduction to current liabilities in contingent consideration owed to the acquirers in connection with the share purchase agreement.

In addition, Hire Technologies will issue an unsecured three-year term 8% promissory note with an estimated principal amount of approximately C$300,000 (US$217,061) in partial satisfaction for the mutual release of claims.

The transaction is subject to other customary closing conditions.