Good Life Networks Inc. (“GLN”, or the “Company”) (TSX-V: GOOD, FSE: 4G5), a Vancouver-based programmatic advertising technology company is pleased to announce that it has entered into a binding letter of intent (the “LOI“) to acquire all of the issued and outstanding shares (the “Purchased Shares“) of Impression X, Inc (“Impression X“), a leading connected television (“CTV“) advertising technology company. GLN will acquire the Purchased Shares for an aggregate purchase price of US$6,000,000.
Under the terms of the LOI, consideration for the Purchased Shares will consist of a combination of cash, common shares of the Company (subject to the approval of the TSX Venture Exchange) and performance earn-outs based on agreed upon milestones. Management of GLN is comfortable that it has the resources available and on hand to complete the acquisition of the Purchased Shares. Closing of the transaction is conditional upon the successful completion of standard due diligence.
Although, the LOI contemplates the parties acting in good faith to finalize and enter into a more formal definitive share purchase agreement (the “Definitive Agreement“), the LOI is expressly stated to be a binding agreement. The LOI will terminate if GLN has not completed due diligence satisfactory to GLN, acting reasonably, within sixty (60) calendar days from the execution of the LOI. The LOI was negotiated at arm’s length.
CTV is one of the fastest growing areas of advertising technology. In 2018, it is expected that over 60% of all premium video on demand will be delivered via a connected television reaching an expected 759.3 million connected television sets globally (Digital TV Research).
“CTV is a perfect strategic extension of our programmatic video exchange. Once integrated with the GLN platform, we can deliver hyper-targeted video advertising in a consumer friendly, brand secure, and non-invasive manner that enhances the connected television user experience for millions. We also believe that this acquisition should be immediately accretive to earnings,” said Jesse Dylan, CEO of GLN.
“We are delighted to bring our leading-edge CTV technology to a large AdTech platform like GLN, allowing us to maximize our growth. GLN is the perfect fit for us, by plugging into a large video exchange platform, we can bring better user experience and scale to our CTV clients,” added Matt Hopkins, CEO of Impression X.
The GLN Story
GLN harnesses the power of artificial intelligence to improve marketing return on investments for advertisers using its patent-pending video advertising technology. According to IAB (Interactive Advertising Bureau) the total U.S. digital ad spend reached a record-setting $88 billion last year, representing a 21 percent uptick over the previous year at $72.5 billion. This marks the first time digital ad revenues have overtaken television (broadcast and cable combined). By 2020, MAGNA, the research arm of media buying firm IPG Mediabrands, expects digital ads to make up 50 percent of all ad spending. GLN recently closed a $9.2 million subscription financing prior to closing its qualifying transaction and trades on the TSX Venture Exchange under the stock symbol “GOOD” and The Frankfurt Stock Exchange under the stock symbol “4G5”.
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.
SOURCE Good Life Networks Inc.