Intertainment Media Updates Sale of itiBiti Platform
3.5 million transaction includes 40% stake in operating company, ongoing revenue and retained liquidity rights
TORONTO, CANADA, Feb 04, 2013 (Menafn - MARKETWIRE via COMTEX) --Intertainment Media Inc. ("Intertainment" or the "Company") (tsxventure:INT)(otcqx:ITMTF)(frankfurt:I4T) announced today that itis in the process of finalizing its sale of itiBiti. The parties havecompleted due diligence, are completing the final agreements andexpect to fully close the transaction shortly. Since the initialannouncement on November 28, 2012, itiBiti has experienced in excessof 200% growth in daily user engagement.
Working together, the teams have completed technology integration andare now deploying a number of new system improvements to increaseuser engagement, platform quality and advertising and sponsorshipprograms.
Up to five (5) Intertainment employees will now be employed by thenew entity. Three (3) Intertainment employees have already made thetransition, with up to two (2) more reviewing offers. This directlyreduces ongoing Intertainment expenses.
Given the industry experience and team leadership, itiBiti's growthis accelerating. In the past 60 days, itiBiti has experiencedsignificant daily engagement growth averaging in excess of 6 Millionuser minutes per day. User engagement is directly related to revenueopportunities, including advertising and sponsorship programs.
As previously announced on November 28, 2012, Intertainment hasentered into a letter of intent to sell its stake in the itiBitiplatform for a total value of 3.5 million to a private technologygroup which is expected to provide up to 4.5 Million in additionalequity value in the form of system development and enhancements. Thetransaction will take the form of cash, debt conversion as well asequity participation and will provide Intertainment with a 40% equitystake in the operating company. This operating company will bemanaged by the private technology group owning a 60% stake and willundertake the day to day management, operations and development ofthe platform including the KNCTR application. The deal also calls forIntertainment to receive one board seat as well as a securedperpetual revenue share of 40% for the first 2 years and declining to20% annually at year 5 and beyond from the independently managedoperation.
Should a future liquidity event occur, where the new enterprise issold privately or transferred to a public vehicle, Intertainment willreceive the initial 30% of the proceeds, up to 5 Million CDN, and40% of the balance of the value of the transaction.
This agreement represents a significant increase in value as well asa future opportunity with a liquidity event as the initial investmentin the itiBiti platform was originally purchased in 2009 for 2million in a cash and stock transaction.
About Intertainment - www.intertainmentmedia.com
Intertainment is one of Canada's leading technology incubators and isfocused on developing, nurturing and investing in both North Americanand global technologies and companies that provide technologysolutions for brands and consumers alike. Intertainment also owns andoperates a number of key properties including Ad Taffy, itiBiti(KNCTR), Ortsbo, Deal Frenzy, The Sweet Card and Magnum, withinvestments in leading edge technologies and social media platformsincluding theaudience.com. For more information on Intertainment andits properties, please visit www.intertainmentmedia.com.
Intertainment is headquartered in the Toronto, Canada region, withoffices in New York, Los Angeles and San Mateo, CA and is listed onthe TSX Venture Exchange under the symbol "INT" and in the US on the OTCQX Market under the symbol "ITMTF".Intertainment is also traded in Europe on the Open Market (RegulatedUnofficial Market) of the Frankfurt Exchange through the XETRAtrading platform under the symbol "I4T".
Forward Looking Information
All statements included herein, other than statements of historicalfact, is forward-looking information and such information involvesvarious risks and uncertainties. There can be no assurance that suchinformation will prove to be accurate, and actual results and futureevents could differ materially from those anticipated in suchinformation. A description of assumptions used to develop suchforward looking information and a description of risk factors thatmay cause actual results to differ materially from forward-lookinginformation can be found in the company's disclosure documents on theSEDAR website at www.sedar.com. The company does not undertake toupdate any forward-looking information except in accordance withapplicable securities laws.
This release may contain forward looking statements within themeaning of the "safe harbor" provisions of US laws. These statementsare based on management's current expectations and beliefs and aresubject to a number of risks and uncertainties that could causeactual results to differ materially from those described in theforward looking statements. Intertainment Media Inc. does not assumeany obligation to update any forward looking information contained inthis news release.
Neither the TSX Venture Exchange nor its Regulation 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.This news release may contain certain forward-looking information.
Intertainment Media Inc.
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SOURCE: Intertainment Media Inc.
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