iSIGN Media Solutions Inc. (“iSIGN” or “Company”) (TSX VENTURE:ISD) is pleased to announce that they have signed a letter of intent (“LOI”) to acquire all of the issued and outstanding shares and secured debt of Pinpoint Media Group Inc. (“Pinpoint”) for the issuance of 7.5 million iSIGN treasury shares. In addition iSIGN will provide a $250,000 secured loan prior to the closing to fully recapitalize Pinpoint.
The transaction is subject to executing a legally binding purchase agreement, TSX Venture Exchange approval and satisfactory renegotiation of the Virtual Private Advertising Network Agreement (“VPAN”) with Alimentation Couche-Tard Inc., for their in-store digital advertising contract that will utilize iSIGN’s technology.
Alimentation Couche-Tard Inc, (“Couche-Tard”) is the leader in the Canadian convenience store industry, doing business under the Couche-Tard and Mac’s brands and in the United States, as Circle K.
“This is an excellent strategic opportunity for iSIGN to vertically integrate its ownership of the digital distribution and collection of advertising, media and customer data associated with the Pinpoint network and also implement the iSIGN technology across one of the largest digital signage networks in North America,” said Alex Romanov, iSIGN’s Chief Executive Officer. “We will be acquiring a network of approximately 5,600 digital display units located in a national convenience store chain, as well as the 300 digital display units that will be in the city of Calgary’s municipal buildings. Using the metrics that we are gathering from our installations in the convenience stores, we will be negotiating with advertising agencies and brands that currently utilize the network to grow the $2.2 million in revenues that Pinpoint realized in their last fiscal year. In addition, we will be able to increase the speed of the installations of our patent-pending software into Pinpoint’s network, that will result in a faster realization of our own revenue.”
“We believe that this platform will be a benchmark for the digital signage and mobile advertising industry, by enabling brands to reach the 1.5 million consumers a day in Pinpoint’s convenience store network.”
“We are excited about the iSign technology and believe it will satisfy the demand of advertisers for real-time metrics which will translate into increased revenues on the VPAN,” said Enmanuel Rumbos, Pinpoint’s President.
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 1.7 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.com.
Chief Executive Officer
(905) 780-6200, ext 1
alex [at] isignmedia.com
Pinpoint Media Group Inc.
Source: iSIGN Media