TORONTO – Marketing solutions provider Intertainment Media Inc. (TSXV:INT) announced Wednesday the completion of its $24.5-million cash and share purchase of SaaS Technologies Inc.. holder of technology used in its Ortsbo platform.
The purchase of SaaS makes Intertainment subsidiary Ortsbo Inc. the sole owner of all existing, in development and future technology, IP and patents related to the Ortsbo platform.
“The SaaS team will remain an integral part of the Ortsbo platform and continue to be actively engaged in the development and success of Ortsbo,” Intertainment said in a news release issued after markets closed.
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Shares in Intertainment closed down three cents, or 5.1 per cent at 55 cents Wednesday on volume of more than 5.6 million shares, making it the most active issue on the TSX Venture Exchange.
The purchase prices is to be paid over a 24-month period, with the vendor having received $4.5 million in cash and 8,250,000 Intertainment shares at a deemed price of 58 cents per share on closing.
The company also cancelled a $500,000 promissory note issued previously by the SaaS vendor to the Intertainment, while the company issued to the vendor a non-interest bearing promissory note in the principal amount of $5 million to be repaid in eight equal instalments over 24 months.
The deal also included the issuing of 16.75 million shares to the vendor to be held in escrow and to be released over a period of 24 months in eight equal instalments.
Intertainment also agreed that if it disposes of Ortsbo or its software to a third party within three years after the closing date, the SaaS vendor will receive five per cent of the consideration.
The SaaS vendor will also receive five per cent of the quarterly revenue of Ortsbo for a period of three years after the closing date.
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