LX Ventures Completes Acquisition of Sosido Networks Inc.
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/30/13 -- LX Ventures Inc. (TSX VENTURE:LXV) ("LXV" or the "Company") and Sosido Networks Inc. ("Sosido") are pleased to announce that LXV has successfully closed the acquisition of Sosido, as originally announced on May 3, 2013. In consideration for the acquisition, LXV has issued 1,382,400 LXV common shares, all of which are subject to a statutory hold period and lock-up for a period of up to twenty-four months.
The completion of this acquisition marks another significant milestone in LX Ventures' high growth strategy of launching, acquiring and integrating early stage high growth technology companies poised for breakout in the HealthTech, AdTech, and FinTech verticals. Leading the HealthTech vertical, Sosido is an online knowledge exchange community for physicians, nurses, pharmacists and other healthcare professionals. It uses innovative technology to connect and filter knowledge through trusted colleagues, creating a unique communication platform that revolutionizes the way health care professionals share information and collaborate with each other. In the most recent fiscal quarter, Sosido's user base tripled, with commitments in place to grow 10x by the end of the next quarter. Management expects this growth to accelerate further now that Sosido is supported by the expertise and resources of the LXV group.
"We are very excited to close this acquisition, as Sosido marks our first investment and acquisition in the highly disruptive HealthTech vertical. Expect to see further consolidation in this sector as large traditional bricks and mortar organizations seek to innovate their business units just as other industries have done," said Mike Edwards, CEO of LX Ventures.
Tanis Steward, Founder and CEO of Sosido, said, "This acquisition broadens the skill sets of the Sosido team and allows us to ramp up the commercialization of our platform. The challenge of knowledge exchange in healthcare is a global one, and the combined LXV-Sosido team is perfectly positioned to address that large market."
About LX Ventures
LX Ventures is a publicly traded incubator that launches, integrates, and acquires early stage high growth technology companies. We are a group of entrepreneurs dedicated to developing the next generation of entrepreneurs by providing funding, resources, mentorship, and access to our global network. We are in the business of building businesses. Our approach is twofold: we either partner with existing companies to assist with distribution and scaling or we internally innovate from idea generation through to launch and exit. For further information about LX Ventures, its technology, collaborations and partnerships, please visit: www.lxventures.com.
About Sosido Networks Inc.
Sosido is an online knowledge exchange community for physicians, nurses, pharmacists and other healthcare professionals. It uses innovative technology to connect and filter knowledge through trusted colleagues, creating a unique communication platform that revolutionizes the way health care professionals share information and collaborate with each other. The company is headquartered in Vancouver, British Columbia. To learn more, please visit www.sosido.com.
ON BEHALF OF THE BOARD
LX VENTURES INC.
Mike Edwards, President & 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.
LX Ventures Inc.