OTTAWA, May 10, 2016 /CNW/ - Ackroo Inc. (TSX-V: AKR) (OTC: AKRFF) (the "Company"), a gift card, loyalty and rewards technology and services provider, has reached an agreement to amend the payment terms for its acquisition of Dealer Rewards Canada, a SaaS based loyalty rewards company tailored to the automotive sector. Under the current terms of the acquisition Ackroo is required to complete payments totaling $1,130,000 prior to January 2017. Ackroo and Dealer Rewards Canada have agreed to extend the current terms and balance an additional 24 months until January 2019.
Under the new payment terms Ackroo will pay the vendor $330,000 on or before July 1st, 2016 and will complete a series of twenty-four monthly payments of $36,916 commencing in January 2017. The monthly payments include an agreed upon 10% interest payment. Ackroo has also attached conversion provisions to the remaining cash payments whereby the vendor may elect to receive shares of Ackroo, in lieu of the applicable cash payments, based on the current 20 day volume-weighted average trading price at the time of election. Any share issuances are subject to the prior approval of the TSX Venture Exchange.
In light of the extension of the payment terms with Dealer Rewards, the Company's current capital requirements have been significantly reduced and as such the Company will not be seeking the full $2,000,000 of its previously announced private placement offering. Instead the Company will close the offering by no later than May 31st 2016 based on proceeds received up to that date. Closing remains subject to the approval of the TSX Venture Exchange.
Ackroo provides gift card and loyalty processing solutions to help small to medium sized businesses attract, retain and grow their customers and their revenues. Through a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process gift card & loyalty transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo's technology solution. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Ackroo Inc.
For further information: please contact: Steve Levely, Chief Executive Officer, Ackroo, Tel: 613-599-2396 x730, Email: [email protected]