LX Ventures, a Vancouver-based and publicly-traded business incubator, announced this week that it intends to acquire Vancouver-based Mobio Technologies Inc., a developer of identity and trust solutions to protect people, property and organizations. LX Ventures will be acquiring Mobio for approximately $400,000 of its own shares, plus revenue sharing. Mobio is a portfolio company of Rho Canada Ventures and raised venture funding in 2011 and 2012.
LX Ventures Enters Term Sheet to Acquire Mobio Technologies Inc.
April 23, 2013 — VANCOUVER, BRITISH COLUMBIA – LX Ventures Inc. (TSX VENTURE: LXV) (“LXV” or the “Company”) and Mobio Technologies Inc. (“Mobio”) are pleased to announce that LXV has entered into a term sheet to acquire Mobio.
Mobio’s flagship product, Mobio INsider, is a leading fan-directed content network for social media influencers and their fans. Since its launch in June 2012, Mobio INsider has helped music stars with 10 thousand to 28 million social fans such as Jacob Latimore and Cher Lloyd accelerate their careers, create content requested and voted on by their top fans, and increase revenues from their social media platforms. As part of the INsider experience, the artist’s fans can engage with brand partners to unlock fan directed content (artist pictures, videos, and answers) before their peers, creating new career supporting revenue.
LX Ventures is excited to accelerate the growth of Mobio and plans to take its fan-directed content platform and expand its capabilities to a broader group of influencers including actors, athletes, and celebrities alike. The platform has recently been monetized and has a clear revenue model that leverages mobile devices. “Mobio’s incentivized advertising technology is a natural fit for our AdTech market vertical. Together, we will internally innovate and deliver revolutionary ways for brands to reach their target consumers across multiple market sectors,” said Mike Edwards, CEO of LX Ventures.
Clovis Najm, Founder and CEO of Mobio, said, “It’s exciting to become part of LXV as their experience and connections to all influencers and large advertisers is incredibly broad. Their team has the skills to accelerate the expansion of Mobio into the global offering we have all been working towards.”
LXV has an exclusive period within which to finalize a definitive agreement. The term sheet remains subject to negotiation and execution of a definitive agreement on or about April 30, 2013. Consideration for the acquisition is contemplated to be 2,000,000 LXV common shares, in addition to certain revenue sharing provisions. The vendors of Mobio will also be granted the right to repurchase an interest in the operating subsidiary of Mobio under certain conditions.
About LX Ventures Inc.
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 Mobio Technologies Inc.
Mobio Technologies flagship product, Mobio INsider, is a leading fan directed content network and gamification platform that rewards music fans with content they have a hand in creating from the artists they love and connects brands to their desired audiences. The platform successfully reaches its core target audience – teens and tweens – through a highly engaging social game, while increasing the artist’s social media following and boosting awareness of brand partners. The company is headquartered in Vancouver, British Columbia. To learn more, please visit www.mobio.net
ON BEHALF OF THE BOARD
LX VENTURES INC.
Mike Edwards, President & CEO
For further information please contact:
Keir Reynolds, Exec. Chairman
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