Ackroo signs letter of intent to acquire the
assets of Quebec based rewards
company
OTTAWA, Sept. 15, 2016 /CNW/ - Ackroo Inc. (TSXV: AKR)
(OTC: AKRFF) (the "Company"), a gift card, loyalty and rewards
technology and services provider, and Orbo Rewards, a marketing
services company specializing in designing creative promotional
programs for business' of all sizes, are pleased to announce that
the two companies have signed a letter of intent for Ackroo to
acquire all of the assets relating to Loyalint/Fidelint, Orbo
Rewards' gift card and loyalty processing solution. Under the terms
of the acquisition, Ackroo will acquire the LoyalInt/Fidelint
software and hardware platform and all related customer contracts
representing over $15,000 of monthly
recurring revenue, additional one time revenue and 138 total
locations.
"The acquisition of Orbo Rewards' Loyalint/Fidelint business is
another great step forward for Ackroo," commented Steve Levely, Chief Executive Officer of Ackroo.
"The Company has been challenged to enter the Quebec market in a significant way as our
competitors have dominated this region in the past. With the cost
to develop business in this region continuing to increase, growing
through acquisition was the logical choice. We now have a
footprint we can leverage to further expand and an opportunity to
grow these merchants through the Ackroo Anywhere product offering.
The Ackroo Anywhere platform will provide all of the current
features and functions the Loyalint/Fidelint platform has plus
considerably more enhancements for the merchant base reducing
migration time but more importantly improving the merchant
experience and our ability to increase recurring and one time
revenues. These advantages plus the structure of the deal
itself allowed us to come to terms now versus later in the
year. An exciting advancement for the Company as we position
ourselves for even greater success."
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.
Ackroo also announces it has granted options to purchase 350,000
common shares to employees of the Company at a price of
$0.21, for a period of 3
years. The grant is subject to the approval of the TSX Venture
Exchange.
About Loyalint/Fidelint
Established in 2009, Loyalint/Fidelint, a division of Orbo
Rewards, has been providing gift card and loyalty processing
solutions across eastern Canada to
businesses of all sizes. Through a powerful internet based tool
that manages mag stripe gift card and loyalty cards,
Loyalint/Fidelint provides merchants a personalized gift card and
loyalty program that drives retention and increases annual
revenues. For more information, visit www.fidelint.com.
About Ackroo
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.
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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.
SOURCE Ackroo Inc.
