Troika Media Group Acquires Crypto/NFT Platform Redeeem
May 24 2021 - 8:09AM
via NewMediaWire -- Troika Media Group, Inc. (Nasdaq:
TRKA) ("TMG" or "Company"), a brand consultancy
and marketing innovations company that provides integrated
branding and marketing solutions for global brands, today
announced that it has closed on the acquisition by its
wholly-owned subsidiary, Redeeem Acquisition Corp. (“RAC”) of
Redeeem, LLC (“Redeeem”), a fintech platform that empowers
businesses to digitize any asset and build their own
blockchain-based payment solutions. RAC has acquired
substantially all of the assets and approximately $165,000 of
specified liabilities of Redeeem for $1.21 million in cash and
$10.89 million in common stock of TMG that vest over three years.
Building on Redeeem’s digital blockchain
capabilities, TMG intends to integrate their products across its
media services and will work with new and existing brands to
offer non-fungible token (NFT) capabilities, crypto payment APIs,
mobile payment expertise, and other revenue-generating
products capable of deploying digital tokens throughout TMG's
expansive network of brands. TMG is adding 10 new employees in the
purchase of Redeeem, including founder and CEO Kyle Hill who
brings 5+ years of experience in blockchain and 15+ years of
experience in tech startups, having served for eight years as the
founder/CEO of HomeHero, a home care marketplace that raised $23
million from Social Capital, Graham Holdings, Tencent, Science and
others in 2016 and was acquired in 2018 by William Yarmuth, former
CEO of Almost Family (AFAM). Since its inception in 2018, Redeeem
has processed over $10 million in crypto payments and manages over
$1 million a month in trading volume.
“We believe this is a game-changing transaction
for both companies and achieves unique and complementary strategic
objectives of taking the Company into the new digital era,"
said Robert Machinist, Troika’s Chairman and CEO.
"The acquisition of Redeeem increases our ability to significantly
grow revenue and strategic opportunities to enhance the core
businesses of TMG by immediately positioning the Company as a go-to
expert in the NFT and crypto space, particularly in our sports,
gaming, and entertainment business, where we will provide brands
new opportunities to foster fandom through NFT
integration. The combined offering of TMG’s existing
portfolio of services, extensive client network, and operational
scale with Redeeem’s highly innovative platform, supports our
long-term strategic vision of utilizing transformative technology
to create additional revenue opportunities for the global brands we
partner with every day.”
Strategic Benefits of the
Transaction
- Accelerates Redeeem’s Growth by Leveraging TMG’s
Client Base and Global Scale. TMG expects to
accelerate Redeeem’s revenue growth by providing access to some of
the largest global brands in the entertainment, sports,
gaming, and consumer goods sectors.
- New Growth Platform to Diversify and Expand
Revenue Base. TMG expects to benefit from and utilize
Redeeem’s expertise in Fintech, NFTs, and mobile payments to
offer value added services to all its current client
base.
- Significantly Expands Market Opportunity to
Enhance Long-Term Growth. TMG’s existing market
presence combined with Redeeem’s fast growing segment is expected
to significantly increase the overall long-term growth for
TMG.
- Attractive and Aligned Business Model
Fundamentals. The combined companies will benefit
from a complementary, expanded revenue base with the goal to grow
recurring revenue streams.
- Experienced Creative Leadership & Enhanced
Team Capabilities. Redeeem brings a talented team
with proven leadership, which is expected to be a catalyst to
delivering new revenue opportunities for its clients and further
growth for TMG.
Transaction Details
- Asset purchase of Redeeem and associated intellectual
property and know how
- Total consideration paid to Redeeem in a combination of
cash and stock: $1.21 million in cash and $10.89 million of Troika
common stock that vests over three years from the Closing
and the assumption by Troika of approximately $165,000 in
specified Redeeem liabilities.
About Troika Media Group
Troika Media Group is an end-to-end brand
solutions company that creates both near-term and long-term value
for global brands in entertainment, sports and consumer products.
Applying emerging technology, data science, and world-class
creative, TMG helps brands deepen engagement with audiences and
fans throughout the consumer journey and builds brand equity.
Clients include Apple, Hulu, Riot Games, Belvedere Vodka, Unilever,
UFC, Peloton, CNN, HBO, ESPN, Wynn Resorts and Casinos, Tiffany
& Co., IMAX, Netflix, Sony and Coca-Cola. For more information,
visit www.thetmgrp.com
About Redeeem
Redeeem is the first enterprise-grade fintech
platform that empowers businesses to digitize any asset and build
their own blockchain-based payment
solutions. Redeeem offers escrow, liquidity, custody,
research, development, and other digital services to help build a
new, open financial system. Redeeem provides a fast, safe and
easy way to earn 20% discounts or more on fungible goods using
bitcoin. We connect traders from all around the world using a
non-custodial wallet and peer-to-peer exchange with no banks or
fiat currencies. For more information, please
visit www.redeeem.com
Forward-Looking Statements
Certain statements in this press release that are
not historical facts are forward-looking statements that reflect
management's current expectations, assumptions, and estimates of
future performance and economic conditions, and involve risks and
uncertainties that could cause actual results to differ materially
from those anticipated by the statements made herein.
Forward-looking statements are generally identifiable by the use of
forward-looking terminology such as "believe," "expects," "may,"
"looks to," "will," "should," "plan," "intend," "on condition,"
"target," "see," "potential," "estimates," "preliminary," or
"anticipates" or the negative thereof or comparable terminology, or
by discussion of strategy or goals or other future events,
circumstances, or effects. Moreover, forward-looking statements in
this release include, but are not limited to, the impact of the
current COVID-19 pandemic, which may limit access to the Company's
facilities, customers, management, support staff, and professional
advisors, and to develop and deliver advanced voice and data
communications systems, demand for the Company's products and
services, economic conditions in the U.S. and worldwide, and the
Company's ability to recruit and retain management, technical, and
sales personnel. Further information relating to factors that may
impact the Company's results and forward-looking statements are
disclosed in the Company's filings with the SEC. The
forward-looking statements contained in this press release are made
as of the date of this press release, and the Company disclaims any
intention or obligation, other than imposed by law, to update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Contact:
For Troika Media Group
Kevin Aratari
kevin@troikamedia.com
Investor Relations
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
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