TORONTO, ONTARIO — (Marketwired) — 05/25/15 — iSIGN Media Solutions Inc. (“iSIGN” or “Company”) (TSX VENTURE: ISD)(OTCQX: ISDSF), a leading provider of interactive mobile advertising solutions that serves brands, commercial locations, retailers and service providers throughout North America, today announced that negotiations to acquire Graphic Media, Inc.–s (“Graphic”) rights for the exclusive distribution of iSIGN products in the Americas, their related reseller rights and ownership in Engage Mobile Media Solutions (“Engage”), has now expanded to include a 100% acquisition of Engage.
iSIGN–s option to acquire Graphic was an integral part of the Distribution Agreement that the companies signed in November 2012. The purchase option granted iSIGN the ability to acquire Graphic by the issuance of a predetermined quantity of iSIGN–s common shares, at the earlier of either the second anniversary of the distribution agreement or upon the acquisition of one or more of the major targeted accounts that had been identified by both parties.
iSIGN initiated acquisition discussions with Graphic in anticipation of receiving in the near term signed contracts with the major brands that have recently completed successful trials with double digit sales increases, or that will in the short term complete their trial in the Golden Pantry Food Store (“Golden Pantry”) installations.
Engage Media was established in August 2014 to be Graphic–s sales and marketing arm for the National Mobile Network. Engage, staffed with experienced advertising executives with major brands and quick service restaurant (“QSR”) experience, have been responsible for the current various trials that iSIGN–s products are currently involved with.
“Golden Pantry installed the iSIGN mobile ad platform in our stores about four months ago and we have been testing ads for a couple of our proprietary products as well as four of our vendor partners,” said Mr. Brian Griffith, President and Chief Executive Officer of Golden Pantry. “So far the results are positive for all involved in the test although we are still tracking the results. We appreciate the technology as it allows us to contact our customers while they are at or on our premises and using their smart phones with the goal of driving traffic into our stores.”
The advantages that iSIGN–s patented technology and products can bring to brands, advertisers and retail outlets, such as low cost delivery of messaging to consumers in immediate proximity to stores is being recognized and appreciated. iSIGN–s products have proven to be successful in increasing foot traffic into retail environments and all parties are realizing that consumers appreciate receiving messages that they can act on while they are shopping. iSIGN–s back-end reporting system also provides retailers, brands and advertisers clear, concise reporting that provides valuable consumer insights.
Currently iSIGN is in the process of receiving and reviewing due diligence material from Graphic and Engage. This review is expected to be completed over the next few weeks, at which time a definitive agreement would be signed.
The advantages to iSIGN in completing this acquisition are many. The Company would benefit from the elimination of extra price steps, with the result that iSIGN–s products and services would become more affordable to end users, and more profitable to iSIGN.
iSIGN expects that the revenue increase from the installation of the first 1,500 Smart Antennas into selected locations, forecasted as approximately $3.6 million for fiscal 2016 from unit sales, data management and monthly licensing, will result in a 20% increase in profitability with the purchase of Graphic.
iSIGN also anticipates that this increased level of efficiency and profitability will continue to increase over the expected total of 4,000 unit installations in fiscal 2016, with an anticipated revenue level of approximately $6.1 million from unit sales, data management and monthly licensing.
In addition the acquisition of 100% of Engage and Graphic will result in iSIGN–s gaining the full advertising revenues paid by brands and advertisers as well as 100% of data revenue. The advertising revenue is currently under final negotiation and will be in addition to the previously mentioned data management, monthly licensing revenue and unit sales.
The Company would further benefit from improved lines of communications with and access to brands, advertisers and all current and expected National Mobile Network installations, as well as streamlined reporting processes.
This anticipated purchase of all assets and contracts of Graphic and Engage will be no more than10 million iSIGN common shares.
All parties are mutually looking forward to working together and completing this transaction as quickly as possible. Our original expectation was to complete the transaction by early June. With the expansion of this acquisition to 100% of Engage, we now expect to complete negotiations by mid-June. The acquisition is subject to executing a legally binding purchase agreement and obtaining TSX Venture Exchange approval.
About iSIGN Media
iSIGN Media, based in Toronto, is a data-focused, software-as-a-service (SaaS) company that is a pioneering leader in gathering point-of-sale data and mobile shopper preferences to generate actionable data and reveal valuable consumer insights. Creators of the Smart suite of products, a patented interactive proximity marketing technology, iSIGN enables brands to deliver targeted messaging, personalized offers and loyalty perks to consumers– mobile devices in proximity and with real-time proof of redemption. iSIGN–s data gathering capabilities provide analytics on price points, typical purchases, in-store dwell time and other shopper metrics that identify emerging consumer behaviors. These insights enable smarter business decisions and provide increased ROI metrics for more transparent marketing. iSIGN delivers relevant, timely messages on an opt-in basis at no charge to consumers, transmitting rich media to consumer mobile devices via Bluetooth® and WiFi connectivity in complete privacy as opposed to iBeacons, apps, downloads and required surrendering of personal information. Proven to increase brand engagement and customer loyalty, iSIGN generates preference-based, predictive “clean data” without compromising consumer privacy. Partners include: IBM, Keyser Retail Solutions, Baylor University, Verizon Wireless, TELUS and AOpen America Inc., with solution distribution by Graphic Media, Inc.
About Graphic Media
Graphic Media, Inc. is the exclusive distributor of iSIGN products and technology in the Americas. We have built the National Mobile Network of gas stations, convenience stores and QSRs to take advantage of iSIGN–s unique proximity marketing products. Graphic Media, Inc. has a rich history of providing our Regional and National Clients with innovative marketing services, advertising graphics, and advertising sign services. Graphic Media intends to integrate iSIGN technology into its marketing portfolio of products and services, thus giving our clients– an advantage over their competition.
About Engage
Engage Mobile Media, partnered with Graphic Media, Inc. is a leading provider of interactive mobile advertising solutions with the aim of becoming the world standard for mobile messaging and data capture. As the exclusive marketing and sales company of the National Mobile Network, Engage–s mission is to build the largest proximity to mobile network in North America. This Network promotes proximity based consumer engagement and the attainment of actionable data, providing marketers with an advanced mobile solution to increase both sales and business intelligence. .
Forward-Looking Statements
This news release may include certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with iSIGN Media–s business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect iSIGN Media–s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. iSIGN Media assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
© 2015 iSIGN Media Solutions Inc. All Rights Reserved. All other trademarks and trade names are the property of their respective owners.
Neither the TSX Venture Exchange nor Its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility or accuracy of this release.
Contacts:
Media contacts:
Emily Storz
SSPR
267-758-2642 (direct)
609-351-3592 (mobile)
Company contacts:
Alex Romanov
iSIGN Media
Ron Leman
Graphic Media
Rick Doyle
Engage Media
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