TORONTO and NEW YORK, April 4, 2016 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT) ("AcuityAds" or the "Company"), a technology leader that provides targeted digital media solutions enabling advertisers to connect intelligently with audiences across online display, video, social and mobile campaigns, is pleased to announce it will be expanding its operations into Europe in Q2 2016.
This European expansion is the result of strong demand from existing customers and partners who have requested that we expand our industry leading programmatic platform to serve the European marketplace. The new European footprint will allow the Company to directly serve both current clients of AcuityAds who have presence in the European market, as well as new companies located in this region. The Company sees this as a growth opportunity since Europe's programmatic video ad revenues alone are expected to increase at a rate of 39% per year nearing almost 2 billion euros by 2020, according to eMarketer.
This expansion will require a capital investment of approximately $600,000 USD to fund the IT infrastructure requirements and hosting partner fees to support our programmatic platform requirements. The new European data center will be located in Amsterdam, Netherlands and the capital required for the IT infrastructure is being provided by our leasing partner.
"We are excited to be expanding into the European market," said Tal Hayek, CEO of AcuityAds. "Given the strong North American demand we have seen for our programmatic platform over the last several years, we believe that now is a perfect time to expand into Europe, which is known to be one of the fastest growing regions for programmatic advertising and brings us closer to becoming a global company."
Additionally, as a result of the Company's financial achievements, AcuityAds is pleased to announce it has accepted a voluntary request from the Term Loan Lenders to defer the first principal repayment of $178,000 in connection with its $2,500,000 term loan facility. The Lenders have further indicated that they may request similar deferrals with respect to future principal repayment instalments. The Loan had been made pursuant to a Credit Agreement dated November 10th, 2015 between the Company, its subsidiaries and various Lenders, including several individuals that are non-arm's length to the Corporation (the "NAL Lenders").
AcuityAds has developed a Programmatic Marketing Platform powered by proprietary machine learning technology that allows advertisers to target and connect intelligently with their audiences across online display, video, social and mobile campaigns. With sales operations in New York, Boston, Los Angeles, Toronto and Montreal, AcuityAds customers range from large Fortune 500 enterprises to small and mid-sized businesses. For more information, visit www.acuityads.com.
Disclaimer in Regards to Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws, including statements regarding future waivers by the Lenders and the future growth of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. In particular, but without limitation, statements contained in this release concerning the expected use of the net proceeds from the Loan are inherently uncertain and subject to prevailing market conditions. Except as required by law, AcuityAds does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE AcuityAds Inc.
For further information: Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, email@example.com; Tal Hayek, Chief Executive Officer, AcuityAds Holdings Inc., 416-218-9888, firstname.lastname@example.org