Ackroo amends payment schedule of Dealer acquisition
2015-11-18 08:14 ET - News Release
Mr. Steve Levely reports
ACKROO AMENDS PAYMENT TERMS FOR DEALER REWARDS CANADA ACQUISITION
Ackroo Inc. has reached an agreement to amend the payment terms for its acquisition of Dealer Rewards Canada, a software-as-a-service-based loyalty rewards company tailored to the automotive sector. Under the current terms, Ackroo agreed to make payments totalling $1.5-million over an 18-month period of time expiringon Dec. 31, 2016, and to issue 769,231 shares. Ackroo made an initial payment of $100,000 and issued the shares agreed on closing of the acquisition, and has now revised the payment terms on the remaining $1.4-million.
Under the new payment terms Ackroo will pay $100,000 by Dec. 31, 2015, $100,000 by Jan. 31, 2016, $100,000 a month for nine months starting in March, 2016, and a final payment of $300,000 due before January 31, 2017. The final cash payment is subject to adjustment based on performance goals for the Dealer Rewards business. Ackroo has also attached conversion provisions to the remaining cash payments, where the vendor may elect to receive shares of Ackroo, in lieu of the applicable cash payments, based on the current 20-day volume-weighted average price at the time of election. Any share issuances are subject to the prior approval of the TSX Venture Exchange.
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