Ackroo signs letter of intent to acquire the assets of Toronto based rewards company
OTTAWA, ON–(Marketwired – October 13, 2017) – Ackroo Inc. (TSX VENTURE: AKR) (OTC PINK: AKRFF) (the “Company”), a gift card, loyalty and rewards technology and services provider, and M3 Rebel, a value added electronic payments provider primarily for retail merchant clients, large and small, are pleased to announce that the two companies have signed a letter of intent for Ackroo to acquire all of the assets relating to KESM/LoyalMark, M3 Rebel’s gift card and loyalty processing solution. Under the terms of the acquisition, Ackroo will acquire the LoyalMark software and hardware platform and all related customer contracts representing a very significant amount of recurring and one time revenue to Ackroo, and adds over 1,200 total locations in Canada plus another 1,200 in the US.
“The addition of M3 Rebel’s KESM/LoyalMark business is a huge step forward for the Company and further validates our strategy to both simplify and consolidate our industry,” commented Steve Levely, Chief Executive Officer of Ackroo. “Combined we significantly increase the size of our customer base, almost double our recurring revenues and expand Ackroo into the United States. We gain technology advancement through product and feature offerings Ackroo does not have today, plus we gain several enterprise clients to better educate and guide the Company in this area. We gain key talent with domain experience and contacts in order to help us achieve our growth goals. Most importantly we add a significant amount of attributable margin that not only covers our current debt obligation but once normalized pushes the company into profitability. A very material advancement for the Company and our shareholders.”
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.
Established in 2001, KESM/LoyalMark a division of M3 Rebel, provides gift card and loyalty processing solutions and services across North America to businesses of all sizes. Specializing in segments like oil and gas, hospitality and general retail, the LoyalMark solution is a secure, affordable, and powerful solution that is easy to design, implement and manage. For more information, visit www.loyalmark.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.
For information, please contact:
Chief Executive Officer
Tel: 613-599-2396 x730