iSign Media Solutions has completed the key condition to purchase Pinpoint Media Group by the signing of a Letter of Intent with Mac's Convenience Stores and Pinpoint. iSign will be issuing 7.5 million treasury shares in return for all of the issued and outstanding shares of Pinpoint. Through this acquisition, iSign will obtain ownership of one of North America's largest digital signage network.
"We have signed an LOI with Mac's/ Alimentation Couche-Tard Inc. to replace the existing VPAN agreement with Pinpoint that sets out the economics of the new agreement," said Alex Romanov, iSIGN's Chief Executive Officer. "The new VPAN arrangement will be for a 5 year term with an option for an additional 5 years and sets out the revenue based royalty payments to Mac's/Couche-Tard. iSign has also agreed, subject to TSX - Venture Exchange approval, to issue warrants to Mac's/Couche-Tard for 3 million iSIGN shares at an exercise price of $0.50 for 5 years, and to give Mac's/Couche-Tard the option of converting either 100% or 50% of its cash royalty payments to 5% or 2 1/2% of iSIGN's outstanding shares subject to TSX - Venture Exchange approval. As per the LOI, a full and complete VPAN and Maintenance and Service Agreement are to be signed within 60 days."
Once the installation of software in the convenience store chain is complete, iSign will have the world's largest fully interactive digital signage network. This network will be used as a showcase to present to the advertising and retail communities the power that traditional digital signage has and how it can bring to advertising campaigns tremendous benefits that would be realized by other retailers and operators in a variety of vertical markets.
"We are excited about this acquisition and believe that it will satisfy advertisers' demand for real-time metrics, which will translate into increased revenues for the network," said Mr. Romanov. "In addition, we will immediately be accelerating our sales efforts with advertising agencies and brands to make them aware of the improved Pinpoint network in order to grow our revenue. We believe that this platform will become the model for all digital signage networks as well as for the mobile advertising industry."
iSIGN is a developer of location-based interactive proximity advertising solutions that deliver rich media, permission based messages, free of charge to cell phones using Bluetooth connectivity, while providing Business Intelligence to the client. Pinpoint is the largest operator of in-store digital media in Canada. Alimentations Couche-Tard Inc. is a leader in the Canadian convenience store industry.