LX Ventures Inc. (TSX VENTURE: LXV) ("LXV" or the "Company") is pleased to announce that it has signed a Letter of Intent to acquire Strutta.com Media Inc. ("Strutta"), a BC Corporation, which is a social media platform that enables brands to create, launch and manage online campaigns to drive leads, awareness and sales.
Under the terms of the Letter of Intent, on closing, LXV will issue 4,687,500 common shares and pay approximately $525,000 in cash to the security holders of Strutta, in order to complete the acquisition. Up to an additional 9,375,000 common shares are issuable by LXV as certain milestones are met in terms of agreed monthly recurring revenue targets. The securities will be subject to a four month hold period and will be subject to certain additional pooling restrictions.
The transaction remains subject to completion of final documentation, regulatory approval and final due diligence. Strutta co-Founder Maura Rodgers stated, "Strutta's team and technology platform can convert social media traffic at dramatically higher rates than traditional online advertising. The combination of Strutta's monetization engine with Mobio's social traffic positions LX Ventures to have the most valuable ad inventory on the Internet."
LXV CEO Mike Edwards added, "We are thrilled to announce this relationship with the Strutta team as they are an ideal addition to our social marketing portfolio along with Mobio. We are taking a leadership position in the social marketing space, and natural synergies exist between Strutta and Mobio, allowing both businesses to accelerate simultaneously."
About LX Ventures
LX Ventures is a publicly traded technology accelerator that acquires, integrates and accelerates high growth technology companies. We are vertically integrated with internal best-in-class practice area teams in sales, marketing, engineering and finance that are leveraged to turn our portfolio companies into industry leading organizations, one by one. We are in the business of building businesses. For further information about LX Ventures, please visit: www.lxventures.com.
ON BEHALF OF THE BOARD
LX VENTURES INC.
Mike Edwards, CEO
CAUTIONARY NOTE: FORWARD-LOOKING STATEMENTS. Other than statements of historical fact, all statements included in this news release, including, without limitation, statements regarding future plans and objectives of LX are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those expected by LX are those risks described herein and from time to time, in the filings made by LX with Canadian securities regulators. Those filings can be found on the Internet at: http://www.sedar.com.
Neither the TSX Venture Exchange nor its Regulatory 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: LX Ventures Inc. Keir Reynolds 778-998-9242 firstname.lastname@example.org www.lxventures.comSOURCE: LX Ventures Inc.