Zoomd Acquires Mobile Marketing Company "Performance Revenues"

Rhea-AI Summary

Zoomd Technologies Ltd. (TSXV: ZOMD) (OTC: ZMDTF) announced the acquisition of mobile marketing firm Performance Revenues for US$350,000 in cash, plus a potential earn-out of US$1,023,500 based on 2021 performance. This strategic move grants Zoomd access to top-tier global advertisers and a foothold in the Japanese market, enhancing its marketing services. CEO Ofer Eitan emphasized the acquisition's potential to improve client offerings and customer experience. The earn-out is pending approval from the TSX Venture Exchange.

Positive

• Access to top-tier global advertisers and entry into the Japanese market.
• Enhanced services with performance-based marketing solutions and influencer marketing.
• Potential for revenue growth through new distribution channels.

Negative

• None.

VANCOUVER, BC, Feb. 10, 2021 /PRNewswire/ -- Zoomd Technologies Ltd. (TSXV: ZOMD) (OTC: ZMDTF) and its wholly-owned subsidiary Zoomd Ltd. (collectively, "Zoomd" or the "Company"), the marketing tech (MarTech) user-acquisition and engagement platform, announces it has acquired the mobile marketing company "Performance Revenues" on February 9, 2021 (www.performancerevenues.com) ("Performance Revenues").

Pursuant to the acquisition agreement, Zoomd acquires all of Performance Revenues' tangible and intangible assets, in consideration for US$350,000 in cash and an earn-out that is based on the annual results of Performance Revenues for 2021, worth a maximum of US1,023,500, payable in Zoomd's shares, using a price per share that is the higher of (i) the fair market value on the day of payment and (ii) C$0.96 ($0.75 USD based on CAD:USD rate) per share. Additional information about the consideration paid and payable will be available in Zoomd's financial statements. The acquisition was an arm's-length transaction, no debt was acquired and no finder's fees were paid or are payable thereunder.  

Performance Revenues is a leading international mobile marketing and influencer company, providing a variety of performance-based marketing solutions led by a team of professional marketers, designers, media buyers, and account managers. Its clients include NASDAQ-listed global companies and other international conglomerates.

The acquisition opens direct access for Zoomd to additional top-tier global advertisers and a strong entry into the Japanese market. The acquisition is expected to enable Zoomd to offer its existing and new clients new distribution channels, high profile influencer-based marketing and novel video creation services for better advertising campaigns and conversion rates.

Ofer Eitan, Zoomd CEO, noted: "We are happy to welcome Performance Revenues, an amazing team of professionals to onboard. This acquisition will enable us to provide another part of the puzzle to our customers, by using unique CGC (Consumer Generated Content) for influencer activities. In addition to that, we strengthen our client list by adding a number of customers that can now enjoy Zoomd's platform as well."

Oded Frommer, Co-Founder and former CEO of Performance Revenues, added: "I am happy and excited that Performance Revenues will be joining the success story of Zoomd. Performance Revenues was one of the first mobile marketing companies, serving many happy clients over the years. We are confided that our platform will provide synergies to Zoomd's operations and allow us to serve our current client-base with a more comprehensive solution."

The earn-out share issuance is subject to approval by the TSX Venture Exchange.

About Zoomd

Zoomd (TSXV: ZOMD) (OTC: ZMDTF), founded in 2012 and began trading on the TSX Venture Exchange in September 2019, offers a site search engine to publishers, and a mobile app user-acquisition platform, integrated with a majority of global digital media, to advertisers. The platform unifies more than 600 media sources into one unified dashboard. Offering advertisers, a user acquisition control center for managing all new customer acquisition campaigns using a single platform. By unifying all these media sources onto a single platform, Zoomd saves advertisers significant resources that would otherwise be spent consolidating data sources, thereby maximizing data collection and data insights while minimizing the resources spent on the exercise. Further, Zoomd is a performance-based platform that allows advertisers to advertise to the relevant target audiences using a key performance indicator-algorithm that is focused on achieving the advertisers' goals and targets.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer IN REGARD TO Forward-looking statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the synergies expected from the acquisition of Performance Revenues' assets, the receipt of the required approvals from the TSX Venture Exchange, the successful integration of the platforms, the ability to grow its user base and attract new users, the overall success of the acquisition and the ability to integrate acquired customers into Zoomd's platform. Forward-looking statements are necessarily based upon several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, technological, legal, privacy matters, political and social uncertainties (including the impacts of the COVID-19 pandemic), the extent and duration of which are uncertain at this time on Zoomd's business and general economic and business conditions and markets. There can be no assurance that any of the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law.

The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.

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For further information please contact:

Amit Bohensky
Chairman
Zoomd
ir@zoomd.com 

Investor Relations
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartners.com

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SOURCE Zoomd Technologies Ltd.

FAQ

What is the acquisition value of Performance Revenues by Zoomd?

Zoomd acquired Performance Revenues for US$350,000 in cash and an earn-out of up to US$1,023,500 based on its 2021 performance.

How does the acquisition benefit Zoomd Technologies?

The acquisition provides Zoomd with access to high-profile global advertisers, new marketing capabilities, and entry into the Japanese market, potentially enhancing revenue growth.

When was the acquisition of Performance Revenues completed?

The acquisition was completed on February 9, 2021.

What are the expected synergies from acquiring Performance Revenues?

Zoomd expects to enhance its marketing services by integrating Performance Revenues' influencer-based marketing and video creation capabilities.