MOBI724 Announces Agreement to Sell Certain Loyalty Based Contracts to Ackroo so as to Focus on the Scale up of its Fintech Business
MONTREAL, May 09, 2019 (GLOBE NEWSWIRE) -- MOBI724 Global Solutions Inc. (“MOBI724” or the “Company”) (TSX-V:MOS) (OTCQB:MOBIF), a global Fintech company offering a fully integrated suite of multiple Card-Linked Offers and Rewards (“CLO&R”), Digital Marketing and Business Intelligence (“DMBI”) and Payment Solutions (“Payment”) announces that its wholly owned subsidiary, I.Q. 7/24 Inc. (“iQ724”), has entered into a definitive agreement (a “Transaction”) to sell certain assets associated with iQ724’s loyalty programs in the retail, hospitality and automotive sectors in both Canada and the USA (the “Targeted Accounts”) to Ackroo Inc. (“Ackroo”) (TSX-V:AKR), an arm’s length party.
Under the terms of the Transaction, iQ724 will continue to service certain globally strategic accounts and Ackroo will acquire the Targeted Accounts for an amount of $2,800,000. A non-refundable deposit of $100,000 was paid by Ackroo, in trust, at the signing of the definitive agreement and the balance of $2,700,000 will be paid in full at the closing of the Transaction. The parties have agreed to transition the Targeted Accounts from iQ724’s loyalty platform to Ackroo’s loyalty platform over the course of a 24-month period (the “Transition Period”). Under the terms of the agreement, iQ724 will retain all intellectual property rights pertaining to its loyalty platform, however, to ensure that the quality of the service to the Targeted Accounts remains unaffected by the Transaction, the parties have entered into various support agreements that run up to a term of 24-months in order to provide product support services pursuant to which iQ724 will transition the Targeted Accounts to Ackroo’s loyalty platform. In light of the various service agreements entered into with Ackroo and based on the average historical billings of the Targeted Accounts, management expects that the Transaction will result in an immediate decrease of approximately $90K per month in top line revenue. Management is fully confident, that the positive impact from focusing the Company’s resources on the scalable Fintech business, rather than on individual small and medium accounts, will generate more value for the shareholders in the medium and long term.
“When MOBI724 acquired iQ7/24, our main goal was the integration of iQ7/24’s sophisticated business intelligence and loyalty solutions platform with MOBI724’s all-in-one ecosystem” said Marcel Vienneau, CEO of MOBI724. “Having completed the integration and all its enhancements, MOBI724 can now offer its clients – payment cards issuers, and major accounts - a truly unique and comprehensive platform. The expansion of our operations in Latin America is experiencing very strong momentum. To ensure that our highly scalable Fintech business is provided with all of the Company’s resources we must remain laser focused. The future of MOBI724 is providing Fintech and data intelligence and analytics solutions primarily to banks and payment processing networks, therefore this Transaction allows greater alignment of the Company’s activities with its strategic approach and business plan. MOBI724 and Ackroo are committed to working closely to ensure a seamless transition for the relevant iQ7/24 clients. The management and the Board of Directors of MOBI724 are confident, that the Transaction bodes well for our shareholders.”
“The acquisition of various iQ7/24 assets from MOBI724 is a great win for both organizations” said Steve Levely, Chief Executive Officer at Ackroo. “We are very focused on consolidating the fragmented gift card, loyalty and marketing services industry and so the addition of iQ724’s business only adds to our strategy for growth. For MOBI724 the divesture of the various iQ7/24 assets will allow them to better focus on their core business of card-linked offers and rewards. The acquisition truly is a win for both company’s customers, employees and shareholders.”
Completion of the Transaction remains subject to a number of conditions, including receipt of any required regulatory and shareholder approvals if required by the Exchange Policy, and such other closing conditions as are customary in transactions of this nature. While the parties expect the Transaction to close in Q2-2019, there can be no assurance that all of the closing conditions will be satisfied and that the Transaction will be completed as disclosed. The Transaction is carried out at arm’s length.
Ackroo provides merchants of all sizes a robust, cloud based multi-currency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins. Through a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process gift card, loyalty and promotional 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.
About Mobi724 Global Solutions Inc.
“We enable smart transactions anywhere”
MOBI724, a global Fintech company, offers a fully integrated suite of multiple Card-Linked Offers and Rewards, Digital Marketing and Business Intelligence and Payment Solutions (including a mobile EMV compliant payment platform), which work with any payment card, on any mobile device and at any Point of Sale. MOBI724 provides turn-key solutions for card associations, card issuers, banks, retailers, manufacturers, offer providers, to create, manage, deliver and track and measure incentive campaigns worldwide in real time. The company captures value from big data to deliver seamless and personalized user experiences for the benefits of all parties in the ecosystem. MOBI724 headquarters are in Montreal, Canada, and the company presently has operations in North and Latin America, the Caribbean and Asia Pacific.
Certain statements in this document, including those which express management’s expectations or estimations with regard to the Company’s future performance, constitute “forward-looking statements” as understood by applicable securities laws. Forward-looking statements are, of necessity, based on a certain number of estimates and hypotheses; while management considers these to be accurate at the time they are expressed, they are inherently subject to significant uncertainties and risks on the commercial, economic and competitive levels. We advise readers that these forward-looking statements are subject to risks, uncertainties, and other known and unknown factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Investors are advised to not rely unduly on the forward-looking statements. This advisory applies to all forward-looking statements, whether expressed orally or in writing, attributed to the Company or to any individual expressing them in the name of the Company. Unless required by law, the Company is under no obligation to publicly update these forward-looking statements, whether to reflect new information, future events, or other circumstances.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release does not constitute a solicitation to buy or sell any securities in the United States.
For further information, please visit www.MOBI724.com or contact:
Investor Relations:Mr. Marcel VienneauCEO/PresidentMOBI724 Global Solutions Inc.T: 514-394-5200; E: IR@mobi724.com