Perk Labs Announces Letter of Intent
Perk Labs Inc. has announced a non-binding letter of intent to merge with GetIt Technologies Inc., enhancing its digital service offerings. The merger, pending due diligence and necessary approvals, aims to create a leading delivery solutions provider across major Canadian cities. Perk will acquire GetIt's assets through a share exchange, rebrand as 'GetIt Local,' and appoint GetIt's CEO, Ryan Hardy, to a senior management role. This strategic move is intended to support rapid growth and provide value to shareholders.
- Merger with GetIt enhances Perk's digital service offerings.
- Expected revenue growth from the combination of both companies.
- Strengthening presence in major Canadian cities post-merger.
- Transaction is subject to regulatory approvals, which may delay completion.
- The merger's success relies on effective integration of two companies.
- Market risks associated with completing the acquisition and realizing projected benefits.
VANCOUVER, BC / ACCESSWIRE / December 19, 2022 / Perk Labs Inc. (CSE:PERK)(OTCQB:PKLBF)(FKT:PKLB) ("Perk" or the "Company") the parent company of Perk Hero, the Company helping businesses go digital, today announced it has signed a non-binding letter of intent (the "LOI") to combine with GetIt Technologies Inc. ("GetIt").
About GetIt
Co-founded by Ryan Hardy and Ben Lacroix, GetIt Technologies is a mobile application technology company that specializes in mobile marketplaces to support small to medium sized businesses. Its platform "Getit Local'' supports hundreds of businesses in Ottawa and Calgary for pickup and delivery technology. For more information, please visit https://getittechnologies.co
The Transaction
Upon completion of the proposed transaction (the "Transaction"), the combined entity will be a leading digital technology provider of delivery and digital ordering solutions with presence in four major Canadian cities. The intent is to build an integrated organization that provides intelligent digital solutions for small to medium sized businesses across Canada and abroad. Under the terms of the LOI:
- Perk will acquire
100% of the outstanding shares of GetIt pursuant to a share exchange with the shareholders of GetIt; - Perk will change its name and rebrand as "GetIt Local"; and
- Ryan Hardy, the CEO of GetIt, will be appointed as CEO, President, or another position of senior management and Jonathan Hoyles will remain with the Company as inhouse legal counsel or another position of senior management.
Each party is conducting its respective due diligence and the contemplated Transaction remains subject to approval by the board of directors of each party, stock exchange and regulatory approval. Subject to the completion of each company's due diligence to its sole satisfaction, the parties will negotiate and proceed to enter into a definitive agreement outlining the terms and structure of the transaction. The final transaction structure will be determined after each party has had the opportunity to receive legal, accounting and tax advice.
Strategic Rationale for the Combination: Building Value with Immediate Accretive Acquisition Revenue Growth
"The combination with GetIt marks the first step in our new corporate strategy of scaling up our business to become a national leader through both organic growth and tactical acquisition. GetIt has built an impressive brand with strong sales and marketing and is experiencing rapid growth in their markets," says Perk CEO Jonathan Hoyles. "We're excited to work together to combine their proprietary delivery technology platform with Perk's industry-leading digital dine-in and white label mobile app platform. For Perk and our shareholders, this merger is value-enhancing and represents a significant step in Perk's strategic and financial-growth plans."
"We at GetIt are excited about this strategic combination. Perk has an impressive operating history and together we will have accomplished a national footprint, an expanded technology offering, and built the value creation foundation for our users, customers, business partners and shareholders", says GetIt CEO, Ryan Hardy. "Personally I look forward to our team rationalizing this highly fragmented sector and delivering products and services that will benefit users and businesses alike in so many ways".
Patrick Power Advising on Merger
Patrick Power, Chairman and President of James Edward Capital Corporation, an Ottawa-based boutique investment bank focused on emerging growth companies, is advising the parties on the merger. Mr. Power has significant experience with strategic initiatives, finance and governance, having previously served in senior executive roles for several TSX/TSXV-listed technology companies. The Company looks forward to drawing on his expertise as it moves to the next stage of growth with a focus on establishing financing for its acquisition strategy.
About Perk Labs Inc.
Perk Labs Inc. is the owner of Perk Hero, the digital franchise company helping businesses transition to the digital economy. Perk Hero provides restaurateurs with friendly and reliable digital ordering, payment and loyalty tools to help them survive and thrive in a difficult economic environment. Perk Hero is growing through a unique community-driven digital franchise business that is available to entrepreneurs at an attractive start-up price.
For more information about Perk Labs, please visit www.perklabs.io. Visit Perk Hero at www.perkhero.com.
For more information contact:
Jonathan Hoyles
CEO
Perk Labs Inc.
(833) 338-0299
investors@perklabs.io
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "may", "believe", "thinks", "expect", "exploring", "expand", "could", "anticipate", "intend", "estimate", "plan", "pursue", "potentially", "projected", "should", "will" and similar expressions, or are those, which, by their nature, refer to future events. These forward-looking statements, which involve risks and uncertainties, relate to, among other things, the discussion of the Company's business strategies and its expectations concerning future operations, including closing of the Transaction, the conditions to completing the Transaction, timing and receipt of regulatory and exchange approvals, and other matters. Although the Company considers these forward-looking statements to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. These include, but are not limited to, the Company's ability to continue operations if the Transaction is not completed, the Company's ability to raise further capital, the Company's ability to obtain regulatory and exchange approvals, and ability to complete the Transaction. As a result, there can be no assurance that the proposed Transaction will be completed as proposed or at all. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking statements. Investors are cautioned that any information released or received with respect to the proposed transaction may not be accurate or complete and should not be relied upon. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Trading in the securities of the Company should be considered highly speculative. Undue reliance should not be placed on such forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.
SOURCE: Perk Labs Inc.
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