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Intertainment Media Finalizes Sale of itiBiti and Ad Taffy Assets

TORONTO, CANADA — (Marketwired) — 04/04/13 — Intertainment Media Inc. (“Intertainment” or the “Company”) (TSX VENTURE: INT)(OTCQX: ITMTF)(FRANKFURT: I4T) announced today that it has executed its arms length agreement to sell its itiBiti and Ad Taffy technology platforms to a Toronto based, private technology company (Itibiti Ventures Inc.) for a total estimated value of CDN $ 3,425,000 million dollars which includes debt conversion, perpetual revenue share payments secured by the transferred assets in the amount of $3 million dollars and a 40% equity stake in the company acquiring the assets. This transaction will also provide additional equity value in the form of system development and product / program enhancements. Intertainment has also included Ad Taffy in the agreement given Ad Taffy-s dependence on the shared technology of itiBiti, allowing both products to potentially flourish under a combined and dedicated independent management team.

The agreement is also projected to provide an expected $1.25 million savings in overall yearly operational cost to Intertainment Media Inc. The agreement provides Intertainment with one (1) board seat as well as a secured perpetual revenue share of 40% for the first 2 years, declining to 20% annually at year 5 and beyond from the independently managed operation. In the event of a future liquidity occurrence, where Itibiti Ventures, or parts thereof are sold privately or transferred to a public vehicle, Intertainment Media will receive the initial 30% of the proceeds, up to $5 Million CDN, and 40% of the balance of the value of the transaction. Although the parties are announcing the execution of the final agreements today, the transfer of day to day management of the Itibiti and Ad Taffy assets began February 1, 2013 in accordance with the initial expected closing date. The new enterprise has seen a significant increase in operational revenues, and is expected to continue to generate results well above those prior to the assets- sale.

“We believe this transaction puts Intertainment Media, and ultimately its shareholders, in a position to secure even greater long term value, as evidenced by the early revenue results,” said David Lucatch, CEO Intertainment Media Inc. “And we are confident that with the new dedicated infrastructure and development teams in place the platforms will continue to expand and grow at an even greater pace and provide additional cash flow opportunities for Intertainment Media.”

About Intertainment –

Intertainment is one of Canada-s leading technology incubators and is focused on developing, nurturing and investing in both North American and global technologies and companies that provide technology solutions for brands and consumers alike. Intertainment also owns and operates a number of key properties including Ad Taffy, itiBiti (KNCTR), Ortsbo, Deal Frenzy, The Sweet Card and Magnum, with investments in leading edge technologies and social media platforms including theaudience.com, capthat.com and Yappn.com. For more information on Intertainment and its properties, please visit .

Intertainment is headquartered in the Toronto, Canada region, with offices in New York, Los Angeles and San Mateo, CA and is listed on the TSX Venture Exchange under the symbol “INT” (TSX VENTURE: INT) and in the US on the OTCQX Market under the symbol “ITMTF”. Intertainment is also traded in Europe on the Open Market (Regulated Unofficial Market) of the Frankfurt Exchange through the XETRA trading platform under the symbol “I4T”.

Forward Looking Information

This news release contains certain “forward-looking information” within the meaning of such statements under applicable securities law including statements relating to the Placement.

Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. The Company undertakes no obligation to update forward-looking statements if circumstances or management-s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.

This news release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)), absent registration or an exemption from registration. The securities offered have not been and will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not be offered for sale in the United States, except in transactions exempt from registration under the U.S. Securities Act and applicable state securities laws.

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 for the adequacy or accuracy of this release.

Contacts:
Intertainment Media Inc.
David Lucatch
CEO
800-395-9943

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