Ackroo signs letter of intent to acquire the assets of Quebec based rewards company
OTTAWA, Sept. 15, 2016 /CNW/ - Ackroo Inc. (TSXV: AKR) (OTC: AKRFF) (the "Company"), a gift card, loyalty and rewards technology and services provider, and Orbo Rewards, a marketing services company specializing in designing creative promotional programs for business' of all sizes, are pleased to announce that the two companies have signed a letter of intent for Ackroo to acquire all of the assets relating to Loyalint/Fidelint, Orbo Rewards' gift card and loyalty processing solution. Under the terms of the acquisition, Ackroo will acquire the LoyalInt/Fidelint software and hardware platform and all related customer contracts representing over $15,000 of monthly recurring revenue, additional one time revenue and 138 total locations.
"The acquisition of Orbo Rewards' Loyalint/Fidelint business is another great step forward for Ackroo," commented Steve Levely, Chief Executive Officer of Ackroo. "The Company has been challenged to enter the Quebec market in a significant way as our competitors have dominated this region in the past. With the cost to develop business in this region continuing to increase, growing through acquisition was the logical choice. We now have a footprint we can leverage to further expand and an opportunity to grow these merchants through the Ackroo Anywhere product offering. The Ackroo Anywhere platform will provide all of the current features and functions the Loyalint/Fidelint platform has plus considerably more enhancements for the merchant base reducing migration time but more importantly improving the merchant experience and our ability to increase recurring and one time revenues. These advantages plus the structure of the deal itself allowed us to come to terms now versus later in the year. An exciting advancement for the Company as we position ourselves for even greater success."
Completion of the acquisition remains subject to a number of conditions, including the negotiation of a definitive agreement, the approval of the TSX Venture Exchange, and such other closing conditions as are customary in transactions of this nature. There can be no assurance that such conditions will be satisfied and that the transaction will be completed as disclosed.
Ackroo also announces it has granted options to purchase 350,000 common shares to employees of the Company at a price of $0.21, for a period of 3 years. The grant is subject to the approval of the TSX Venture Exchange.
Established in 2009, Loyalint/Fidelint, a division of Orbo Rewards, has been providing gift card and loyalty processing solutions across eastern Canada to businesses of all sizes. Through a powerful internet based tool that manages mag stripe gift card and loyalty cards, Loyalint/Fidelint provides merchants a personalized gift card and loyalty program that drives retention and increases annual revenues. For more information, visit www.fidelint.com.
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.
Forward Looking Statements
This release contains forecasts and forward-looking statements that are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company's ability to raise enough capital to support the company's go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company's strategy; government regulations and approvals; changes in customers' budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Ackroo Inc.
For further information: Steve Levely, Chief Executive Officer | Ackroo, Tel: 613-599-2396 x730, Email: [email protected]