TORONTO, ONTARIO–(Marketwired – Feb. 27, 2014) – DealNet Capital Corp. (the “Company” or “DealNet”) (CNSX:DLS)(PINKSHEETS:GAIMF) is pleased to announce that it has entered into a letter of intent (the “LOI”) to acquire all of the issued and outstanding shares of a Mobile Communications Company (the “Target”). Founded in 2002, the Target is a privately held technology and customer engagement services company that provides end-to-end mobile marketing solutions and carrier-grade messaging infrastructure to allow their clients to engage their mobile customers.
The terms of the LOI require DealNet to issue at closing 5,000,000 common shares of the Company, $500,000 in cash to the vendors, and an earn-out (paid on a quarterly basis over a 36-month period) to key management based on a percentage of the EBITDA earned by the Target following the closing date. The earn-out percentage to be applied will be determined prior the Company and the Target entering into a formal share purchase agreement. Closing of the transaction described herein will occur on or before March 31, 2014 or such other date as mutually agreed upon.
“We are excited about adding the Target’s solutions to our Business Process Outsourcing suite of services, along with their exceptional executive and product development team,” said Michael Hilmer COO of DealNet and President of DealNet’s BPO division, OCCGI. “The Target is a pioneer in the mobile messaging and engagement space, driving a lower-cost, high-value alternative to live voice responses and its proprietary, highly advanced platform is employed across many brand-name customers. This acquisition not only adds value to our BPO customers, but also to the Target’s client-base as our combined solutions represents significant value and upsell opportunities to both client sets.”
The Target’s CEO commented, “The company has a history of integrating mobile technology into our clients’ strategies and systems. This event will allow our company and DealNet to offer broader, very integrated solutions to our existing clients and to market to a broader customer base, taking advantage of the strengths of both companies.”
About DealNet Capital Corp.
DealNet Capital Corp. is a public company that trades under the symbol DLS on the Canadian Securites Exchange, formerly the Canadian National Stock Exchange. DealNet is a merchant banking company with a flexible investment mandate and a strategic focus on recurring revenue businesses. The company has recently focused its investments towards the thriving North American Business Process Outsourcing (BPO) Market as well as the Consumer Financing Market by leveraging its recently acquired BPO division. DealNet continues to look for acquisition opportunities in these key markets in order to continue to drive competitive advantages and growth.
ON BEHALF OF DEALNET CAPITAL CORP.
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The Canadian National Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These statements involve risks and uncertainties including, without limitation, DealNet’s ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.
DealNet Capital Corp.
Bob Cariglia
President and CEO
+1-416-806-8816
bcariglia@dealnetcapital.com
www.dealnetcapital.com
