TORONTO and NEW YORK, April 4,
2016 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT) ("AcuityAds"
or the "Company"), a technology leader that provides targeted
digital media solutions enabling advertisers to connect
intelligently with audiences across online display, video, social
and mobile campaigns, is pleased to announce it will be expanding
its operations into Europe in Q2
2016.
This European expansion is the result of strong demand from
existing customers and partners who have requested that we expand
our industry leading programmatic platform to serve the European
marketplace. The new European footprint will allow the
Company to directly serve both current clients of AcuityAds who
have presence in the European market, as well as new companies
located in this region. The Company sees this as a growth
opportunity since Europe's
programmatic video ad revenues alone are expected to increase at a
rate of 39% per year nearing almost 2
billion euros by 2020, according to eMarketer.
This expansion will require a capital investment of
approximately $600,000 USD to fund
the IT infrastructure requirements and hosting partner fees to
support our programmatic platform requirements. The new
European data center will be located in Amsterdam, Netherlands and the capital
required for the IT infrastructure is being provided by our leasing
partner.
"We are excited to be expanding into the European market," said
Tal Hayek, CEO of AcuityAds.
"Given the strong North American demand we have seen for our
programmatic platform over the last several years, we believe that
now is a perfect time to expand into Europe, which is known to be one of the
fastest growing regions for programmatic advertising and brings us
closer to becoming a global company."
Additionally, as a result of the Company's financial
achievements, AcuityAds is pleased to announce it has accepted a
voluntary request from the Term Loan Lenders to defer the first
principal repayment of $178,000 in
connection with its $2,500,000 term
loan facility. The Lenders have further indicated that they
may request similar deferrals with respect to future principal
repayment instalments. The Loan had been made pursuant to a
Credit Agreement dated November
10th, 2015 between the Company, its subsidiaries
and various Lenders, including several individuals that are
non-arm's length to the Corporation (the "NAL Lenders").
About AcuityAds:
AcuityAds has developed a Programmatic Marketing Platform
powered by proprietary machine learning technology that allows
advertisers to target and connect intelligently with their
audiences across online display, video, social and mobile
campaigns. With sales operations in New
York, Boston, Los
Angeles, Toronto and Montreal, AcuityAds customers range from large
Fortune 500 enterprises to small and mid-sized businesses.
For more information, visit www.acuityads.com.
Disclaimer in Regards to Forward-looking
Statements
Certain statements included herein constitute
"forward-looking statements" within the meaning of applicable
securities laws, including statements regarding future waivers by
the Lenders and the future growth of the Company. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management at this
time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Investors are
cautioned not to put undue reliance on forward-looking statements.
In particular, but without limitation, statements contained in this
release concerning the expected use of the net proceeds from the
Loan are inherently uncertain and subject to prevailing market
conditions. Except as required by law, AcuityAds does not intend,
and undertakes no obligation, to update any forward-looking
statements to reflect, in particular, new information or future
events.
Neither 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.
SOURCE AcuityAds Inc.