Strategic transaction seen as synergistic, cumulative to 2022 earnings Company targets breakeven EBITDA run rate by year-end
NEW YORK, February 17, 2022 (GLOBE NEWSWIRE) — Logic, Inc. (OTCQX: LGIQ, NEO: LGIQ), a global provider of award-winning consumer acquisition solutions, announced today that it has signed a binding Letter of Intent (LOI) to acquire certain assets of Battle Bridge Labs LLC, (“Battle Bridge”). a digital brand marketing agency based in Tulsa, Oklahoma.
Battle Bridge is a leading and fast-growing boutique provider of digital brand marketing services including Pay Per Click Management, Social Media Marketing, Funnel Building & Optimization, SEO, Web Design, Conversion Optimization and more. It anticipates booking $3.8 million in revenue in 2022 with $1.4 million in positive cash flow (EBITDA). It is a certified partner of Google, Shopify, bing ads, ima and has been featured in Forbes, HuffPo, Wix.com and other leading publications.
The two companies have been collaborating on projects recently, and Logiq management has been favorably impressed with Battle Bridge’s management, quality of content creation, and operational execution. This transaction is expected to generate incremental revenue and cumulative earnings for Logiq while synergistically increasing its content creation resource and broadening its digital marketing expertise, allowing both companies to scale their assets and operations. to accelerate growth.
LOI Binding Terms
Under the terms of the LOI, the parties intend to complete a formal purchase agreement by the end of the current quarter. Pursuant to the LOI, Logiq intends to purchase certain Battle Bridge assets for a total consideration of $3.25 million, consisting of $250,000 in cash and the issuance of $3 million in restricted shares of Logiq common stock to be subject to a minimum block of one year. disposal with escape hatches in the second year. It is currently contemplated that the transaction will be structured as an asset purchase and that certain Battle Bridge employees will become Logiq employees upon closing of the transaction. The LOI contains a “no buy” provision, certain non-compete provisions, and certain closing conditions, including, but not limited to, receipt of shareholder approval (to the extent applicable) and other customary due diligence conditions and closing, with both parties paying their own legal, accounting and transaction costs.
Travis Phipps, Founder and President of Battle Bridge, said: “Battle Bridge is eager to scale our talent, resources, experience and customer base, and joining forces with Logiq does just that and enables the rapid growth we thrive on at Battle Bridge.” .
Brent Suen, President and CEO of Logiq, said: “We have enjoyed collaborating with Battle Bridge over the past several months, appreciate their expertise and effectiveness, and view this transaction as a win-win combination that accelerates growth and opportunity for both businesses.
“The big lesson for investors is that this is just one of several potentially lucrative acquisitions we are currently considering,” added Mr. Suen. “We have analyzed an initial list of nearly 100 potential industry targets, narrowed it down to a short list of exciting, innovative and enriching targets that we are actively exploring for a transaction. Financially, our goal for 2022 is to reach a break-even EBITDA run rate by the end of the year, a goal that shapes every strategic decision.”
Logiq Inc. is a leading US-based global provider of customer acquisition and e-commerce solutions by simplifying digital advertising. Provide end-to-end data-driven marketing through your results solution or provide software to access data by triggering campaigns across multiple channels.
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Important Cautions Regarding Forward-Looking Statements
This press release contains certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, and its amendments, and is subject to the Port created by those sections. This press release also contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation relating to Logiq’s current expectations and opinions about future events. Any statement that expresses or involves discussions of expectations, beliefs, plans, goals, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as “will likely”, “is expected to”, ” expects”, “will continue”, “anticipates”, “anticipates”, “believes”, “estimates”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “target” and “outlook” ”) are not historical facts and may be forward-looking statements and may include estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. There can be no assurance that these expectations will prove to be correct and do not undue reliance should be placed on any forward-looking statements contained in this press release.
These statements speak only as of the date of this press release. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Logiq’s control, which could cause actual results and events to differ materially from those disclosed. or implied by such forward-looking statements. In particular and without limitation, this press release contains forward-looking statements about our products and services, continued use of and/or demand for our products and services, expectations about our revenues, and the revenue-generating potential of our products and services. , our strategic partnerships and alliances, potential strategic transactions, the impact of global pandemics (including COVID-19) on demand for our products and services, industry trends, general market growth rates, our marketing strategies, growth, continued growth in the markets served by our products and solutions, our business plans and strategies, the proposed acquisition of certain assets of Battle Bridge, including, but not limited to, our ability to successfully negotiate and finalize a purchase that governs the terms of such acquisition, the structure of the transaction, the timing or of the transaction, and the valuation and success of the business after completion of the transaction, if any, and other risks described in the Company’s prior press releases and in its filings with the Securities and Exchange Commission ( SEC), including its Annual Report on Form 10-K and any subsequent public filings, and filings made pursuant to Canadian securities legislation which are available at www.sedar.com, including under the heading “Risk Factors” at the Company’s Canadian Prospectus.
Logiq undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. New factors emerge from time to time, and Logiq cannot predict all of them, nor assess the impact of each factor or the extent to which any one factor, or combination of factors, may cause results to differ materially from those. contained in any forward-looking statement. Any forward-looking statement contained in this press release is expressly qualified in its entirety by this cautionary statement.
Brent Suen, CEO
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