Calgary, Alberta, (December 10, 2018) - Ivrnet Inc. (TSXV: IVI) ("Ivrnet" or the “Corporation”) has signed a term sheet with Mobile Royalties Corp. (“Mobile Royalty”), a private equity firm, for the sale of a royalty on future NexText revenues. In the term sheet, Mobile Royalty agrees to pay Ivrnet $900,000 for a 40% share in NexText revenues that will decrease to 15% upon Mobile Royalty receiving $1.8M of royalty payments over the next two years. Should it take longer than two years for Mobile Royalty to receive $1.8M of royalty payments, the revenue share will drop from 40% to 15% upon $2.7M of royalty payments being completed. As part of the Mobily Royalty deal, Ivrnet retains the rights to repurchase the long term royalty stream – once the royalty has decreased to 15% – at 3x the annualized previous three months Royalty payments. Royalty purchase is at Ivrnet’s option. No finder’s fees, broker’s fees and/or commissions will be paid in connection with the royalty sale.
“Ivrnet is pleased to find a partner to assist with the growth of the NexText Mobile Advertising platform”, states Chris Topolniski, Ivrnet COO. “Capital raised through this royalty deal will provide considerable resources to the sales and marketing of NexText, accelerating growth significantly faster than we could otherwise do. With faster growth we expect to generate more net revenue for Ivrnet, even factoring in the royalty sharing.”
Use of proceeds from the royalty sale will be restricted to sales, marketing, development or other efforts that advance the NexText platform.
“Mobile Royalty is yet another strategic partnership to close out 2018”, adds David Snell, Ivrnet CEO. “The Mobile Royalty partnership adds to the recently announced sales partnerships with Imagine Wireless and Altitude Communications, as well as the most recently announced technology and sales partnership with BiLDIT.”
“Mobile Royalty adds a non-dilutive, non interest bearing financial partner to our recent initiatives, providing a key component to our stated goal of increasing sales activities 10 fold in 2019 over the beginning of 2018. We are thrilled to have this opportunity to add to the resources of Ivrnet without incurring dilution to our shareholders,” concludes Snell.
The Mobile Royalty deal is expected to complete towards the end of December 2018 or early 2019. As previously mentioned, no commissions or fees will be paid by Ivrnet in connection with this sale.
Ivrnet is a software and communications company that develops, hosts, sells and supports value added business automation software. Our products and services are delivered through the traditional phone network and the Internet. These applications facilitate automated interaction through personalized communication between people; mass communication for disseminating information to thousands of people concurrently and personalized communication between people and automated systems. Ivrnet's applications are accessible through nearly any form of communication technology, at any time, from anywhere in North America via voice, phone, fax, email, texting and the Internet.
About Mobile Royalties Corp.
Mobile Royalties Corp. is a private Alberta corporation created to purchase streams of royalties from mobile software technology companies that operate in the continuously evolving mobile environment. Our vision is to help foster growth of mobile technology companies through non dilutive capital.
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release contains forward-looking information relating to the closing of the Private Placement. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the closing of the Private Placement not to occur or the closing date to be materially different from that expressed or implied herein, including but not limited to: risks related to capital markets, general economic conditions, legislative and regulatory developments, and the regulatory approval process for the Private Placement, as well as those factors discussed in Ivrnet's documents filed on SEDAR (www.sedar.com).
Although Ivrnet has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Specifically, Ivrnet cannot guarantee that the Mobile Royalty private equity investors can raise $900,000, nor can Ivrnet specially guarantee the increased growth rate from investing money into sales and marketing. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Ivrnet does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Ivrnet is available at www.sedar.com.
For further information please contact:
Chris L. Topolniski - Chief Operating Officer, Ivrnet Inc.
Direct: (403) 538-9722
Cellular: (403) 870-2434
Michae Yeung, CFA
Mobile Royalties Corp.
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.