iSIGN Media Solutions Inc. ("iSIGN" or "Company") (TSX VENTURE:
ISD) is pleased to announce that it has completed the key condition
to purchase Pinpoint Media Group Inc. ("Pinpoint"), by the signing
of a Letter of Intent ("LOI") with Mac's Convenience Stores Inc..
("Mac's") and Pinpoint for a new 5 year Virtual Private Advertising
Network Agreement ("VPAN").
iSIGN will be issuing 7.5 million iSIGN treasury shares in
return for all of the issued and outstanding shares of Pinpoint
upon receipt of the signed Purchase and Sale Agreement and TSX
approval.
"We have signed an LOI with Mac's/ Alimentation Couche-Tard Inc.
("Couche-Tard") to replace the existing VPAN agreement with
Pinpoint that sets out the economics of the new agreement," said
Alex Romanov, iSIGN's Chief Executive Officer. "The new VPAN
arrangement will be for a 5 year term with an option for an
additional 5 years and sets out the revenue based royalty payments
to Mac's/Couche-Tard. iSign has also agreed, subject to TSX -
Venture Exchange approval, to issue warrants to Mac's/Couche-Tard
for 3 million iSIGN shares at an exercise price of $0.50 for 5
years, and to give Mac's/Couche-Tard the option of converting
either 100% or 50% of its cash royalty payments to 5% or 2 1/2% of
iSIGN's outstanding shares subject to TSX - Venture Exchange
approval. As per the LOI, a full and complete VPAN and Maintenance
and Service Agreement are to be signed within 60 days."
Through this acquisition of Pinpoint, iSIGN will obtain
ownership of one of North America's largest digital signage
networks, with approximately 5,600 digital display units located
throughout the Couche-Tard chain of Mac's convenience stores across
Canada and 300 digital display units located in the City of
Calgary's municipal buildings.
The Company anticipates that ownership of Pinpoint's digital
signage networks will enable us to more quickly deploy our software
solution within both the Couche-Tard Mac's and City of Calgary
locations, which will result in a faster realization of revenue and
metrics from our Interactive Marketing Solution ("IMS") 3.1
software.
Once the installation of our software in the convenience store
chain is complete, we will have the world's largest fully
interactive digital signage network, reaching an average of 1.5
million consumers a day throughout our convenience store network
alone. Through our ownership of this network, we expect that we
will be able to better demonstrate ROI to brands and retailers by
helping them increase sales within the Couche-Tard environment,
while showing the advantages that our IMS patent-pending software
and its various reporting features can bring to all retailers and
brands.
This network will be used as a showcase to present to the
advertising and retail communities, the power that traditional
digital signage, integrated with and enhanced by our IMS 3.1
software solution has and how it can bring to advertising campaigns
tremendous benefits that would be realized by other retailers and
operators in a variety of vertical markets (ex: restaurants, fast
food outlets, shopping malls, car dealerships, theaters, real
estate offices, etc).
It is our belief that by converting Pinpoint's networks into
interactive digital signage networks, we will be able to fully
maximize their inherent revenue potential and user base, while
retaining that revenue for the consolidated Company.
"We are excited about this acquisition and believe that it will
satisfy advertisers' demand for real-time metrics, which will
translate into increased revenues for the network," said Mr.
Romanov. "In addition, we will immediately be accelerating our
sales efforts with advertising agencies and brands to make them
aware of the improved Pinpoint network in order to grow our
revenue."
"We believe that this platform will become the model for all
digital signage networks as well as for the mobile advertising
industry," added Mr. Romanov.
About iSIGN Media
iSIGN is a leading developer of location-based interactive
proximity advertising solutions that deliver rich media, permission
based messages, free of charge to cell phones using Bluetooth®
connectivity, while providing Business Intelligence to the client.
The Company's patent-pending advertising platform combines the
precision of direct marketing and the tracking potential of the Web
to deliver more cost effective and ROI-driven advertising than is
possible via print, radio and television. iSIGN is based in
Richmond Hill, Ontario with R&D and customer support operations
in Vancouver, BC. iSIGN is a business partner of AOpen America
Inc., having an OEM agreement for the embedding of its IMS software
in AOpen's digital media players and IBM, as their Solution
Provider, POS All Models. iSIGN's software solutions are also
distributed by BlueStar Inc. to their network of Value Added
Resellers. iSIGN is publicly traded in Toronto (TSX.V) under the
symbol "ISD". Additional information about iSIGN Media can be found
at www.isignmedia.com.
About Pinpoint Media Group Inc.
Pinpoint is the largest owner/operator of in-store digital media
in Canada. With a national footprint, Pinpoint reaches an average
of 1.5 million consumers a day through our convenience store
network, using state of the art technology to push relevant
content. Our Point-of-Sales Integration allows us to trigger ads
alongside the digital receipt on every transaction, delivering
truly relevant content when it matters most. Pinpoint is present in
1,400 convenience stores across Canada, with just over 5,600
digital faces. Our high impact product and services have been shown
in numerous case studies, whether point of sale, brand or
otherwise, to build sales and brand equity. Constantly expanding
and improving our networks, we have won the City of Calgary's parks
and recreation contract to deploy and manage its digital solution.
Having multiple channels allows us to get an accurate insight into
what moves the industry and where it is going. Additional
information about Pinpoint Media can be found at
www.pinpointmediagroup.ca.
About Couche-Tard
Alimentations Couche-Tard Inc. is the leader in the Canadian
convenience store industry. In North America, Couche-Tard is the
largest independent convenience store operator (whether integrated
with a petroleum company or not) in terms of number of
company-operated stores. Couche-Tard's network is comprised of
5,795 convenience stores, 4,128 of which include motor fuel
dispensing, operated by 13 business units, including nine in the
United States covering 43 states and the District of Columbia and
four in Canada covering all ten provinces. More than 53,000 people
are employed throughout Couche-Tard's retail convenience network
and service centres. Additional information about Pinpoint Media
can be found at www.couche-tard.com.
Forward-Looking Statements
This news release includes 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, including the matters discussed under "Risks
and Uncertainties" in the Filing Statement filed on October 9th,
2009 with the regulatory authorities. 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.
© 2011 iSIGN Media Solutions Inc. All Rights Reserved. All other
trademarks and trade names are the property of their respective
owners.
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.
Contacts: iSIGN Media Alex Romanov Chief Executive Officer (905)
780-6200, ext 1 alex@isignmedia.com www.isignmedia.com Pinpoint
Media Group Inc. Enmanuel Rumbos President (416) 262-9290
enmanuel.rumbos@pinpointmediagroup.ca www.pinpointmediagroup.ca
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