FOMO SIGNS LOI TO ACQUIRE SMARTSOLUTION TECHNOLOGIES

Rhea-AI Summary

On August 16, 2021, FOMO CORP. (OTC: FOMC) announced a Letter of Intent to acquire SMARTSolution Technologies Inc. (SST). Operating as a wholly owned subsidiary, SST specializes in interactive communication tools for educational institutions, corporations, and healthcare facilities. The deal, expected to close by the end of September 2021, includes the issuance of 1 million Series B Preferred shares and the assumption of SST’s bank debt. The acquisition aims to expand FOMO's reach in the EdTech sector and enhance product offerings for existing clients.

Positive

• The acquisition of SST is expected to significantly broaden FOMO's portfolio in the EdTech space.
• SST has established a strong client base with over 150 school districts, offering potential revenue growth for FOMO.
• SST's technology aligns well with current market demands for remote communication solutions.

Negative

• The acquisition involves assuming several hundred thousand dollars in SST's bank debt, which could impact FOMO's financials.
• Completion of the transaction is contingent on refinancing SST's bank debt and may face delays.

Chicago, IL, Aug. 16, 2021 (GLOBE NEWSWIRE) -- FOMO CORP. (OTC: FOMC) has signed a Letter of Intent (“LOI”) to acquire SMARTSolution Technologies Inc. (SST - https://smarterguys.com/). The business will operate as a wholly owned subsidiary of FOMO and keep its name and brand in addition to its current HQ in Pittsburgh, PA. The transaction is expected to be completed by end of September 2021, subject to signing a Definitive Agreement and refinancing of SST’s bank debt of several hundred thousand dollars.

SST is a well-established provider of interactive communication tools and related IT systems to schools and colleges, as well as to corporations and healthcare institutions including hospitals and clinics for telemedicine. SST designs and builds advanced audio-visual enabled conference rooms, training rooms, and classrooms. The Company also provides professional audio-visual equipment, installation and related-IT integration, as well as follow-up maintenance and support services.

Some of the capabilities of SST include collaborative technologies, sharing information over multiple devices and multiple locations, interactive meeting tools, audio systems for group sharing, digital signage, the latest audio and visual technologies, videoconferencing, and interactive meeting technologies, including white boards. In addition to SST’s growing clients in the corporate and healthcare sectors, the company’s current largest client-base also includes over 150 school districts located in Pennsylvania and the neighboring Mid-Atlantic states.

In brief, SST is well-positioned to capitalize on the growing demand for remote communication technologies coupled with advanced teaching (i.e., "EdTech") tools such as its line of digital boards for schools and colleges in the current and post-COVID environment. Additional add-on acquisitions are planned to complement SST’s product line and to aggressively expand geographically in the coming months.

Under the LOI, the terms of the offer include the issuance of one million (1,0000,000) Series B Preferred shares, three hundred million (300,000,000) common stock purchase warrants struck at $0.02, and the assumption of several hundred thousand dollars in bank debt. FOMO is currently in discussions with commercial lenders, family offices, and institutional investors for financial backing. An accelerated due diligence effort is underway with an on-site review and analysis scheduled for August 25, 2021.

Both SST and FOMO management see a significant opportunity for expansion and plan to form an “EdTech” division in FOMO with like acquisitions, grow SST organically in additional markets, and cross-sell clean air, lighting, robots as a service (“RaaS”), energy management, and broadband to SST’s existing and future customers.

Mitchell Schwartz, current CEO & Founder of SST added: "I look forward to SST's joining FOMO's expanding family of "tech-driven" firms. This transaction also allows SST to gain access to additional capital to accelerate its growth by beefing-up its sales & marketing resources, pursuing complementary acquisitions, and capitalizing on cross-selling opportunities within FOMO's family of companies. For SST's dedicated staff, the transaction will expand career opportunities, and for our clients including more than 150 school-districts in the Mid-Atlantic, this will offer them access to broadened and innovative products & services from SST and FOMO's family of companies covering Ed-Tech, Energy Efficiency and Safety solutions for buildings. In brief, I couldn't be more thrilled by this pending "win-win-win" combination of SST and FOMO".

Vik Grover, CEO of FOMO CORP., stated: “This accretive acquisition nicely complements and significantly broadens its portfolio of companies and planned acquisitions in the clean-tech arena and should provide good value to FOMO shareholders. I am extremely pleased with the opportunity to acquire SST”.

About FOMO CORP.

FOMO CORP. (https://www.fomoworldwide.com/) is a publicly traded company focused on business incubation and acceleration. The Company invests in and advises emerging companies aligned with a growth mandate. FOMO is developing direct investment and affiliations - majority- and minority-owned as well as in joint venture formats - that afford targets access to the public markets for expansion capital as well as spin-out options to become their own stand-alone public companies.

Forward Looking Statements:

Statements in this press release about our future expectations, including without limitation, the likelihood that FOMO CORP. will be able to meet minimum sales expectations, be successful and profitable in the market, bring significant value to FOMO CORP.’s stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. FOMO’s business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing. No information in this press release should be construed in any form shape or manner as an indication of the Company’s future revenues, financial condition, or stock price.

Investor Contact:

FOMO CORP.
Investor Relations
(630) 286-9560
IR@fomoworldwide.com 

FAQ

What is the significance of FOMO CORP.'s acquisition of SMARTSolution Technologies Inc. (SST)?

The acquisition aims to strengthen FOMO's position in the EdTech sector by enhancing its technology offerings for educational institutions and corporate clients.

What are the financial terms of the acquisition between FOMO and SST?

FOMO plans to issue 1 million Series B Preferred shares and assume SST's bank debt, which amounts to several hundred thousand dollars.

When is the acquisition of SST by FOMO expected to be finalized?

The transaction is expected to be completed by the end of September 2021, pending a Definitive Agreement and refinancing of SST's bank debt.

How will the acquisition impact FOMO's shareholders?

FOMO anticipates the acquisition to be accretive, potentially providing good value to its shareholders through expanded offerings and market reach.

What strategic plans does FOMO have following the acquisition of SST?

FOMO plans to form an EdTech division, grow SST's market presence, and pursue additional acquisitions to enhance its product line.