My Rewards International Ltd (ASX: MRI) has announced that it has entered into a binding asset purchase agreement with Frankly Agency Pty Ltd (“Frankly”), a digital marketing agency based in Melbourne. Pursuant to the agreement, My Rewards will acquire Frankly’s business and assets for a total consideration of $1.8 million.
Frankly Agency Pty Ltd offers a range of services that include lead generation, search engine marketing (SEM), web development, creative design, and campaign reporting. It has a prestigious client list that includes the National Basketball League (NBL), among others. Frankly operates under the domain name www.frankly.com.au, which will be included as part of the assets to be acquired by My Rewards.
The Proposed Transaction is consistent with My Rewards’ strategy of investing in technology and assets to drive growth of its loyalty rewards business. The acquisition of Frankly is expected to add significant value to My Rewards’ existing operations and allow it to build a complete solution for businesses to attract, engage and retain employees and customers.
The Proposed Transaction is subject to certain conditions, including approval by My Rewards’ shareholders of the shares to be issued as consideration under the Agreement. The consideration payable by My Rewards under the Proposed Transaction is $1.8 million, to be paid as follows: $750,000 in cash in monthly instalments over a period of six months, and $1,050,000 in My Rewards shares to be issued at the lower of the five-day volume weighted average price on the day prior to the Extraordinary General Meeting (EGM) and $0.026 per share.
The Proposed Transaction is anticipated to be self-funding, and there will be no change to My Rewards’ Board of Directors as a result of the Proposed Transaction. However, the Company is investigating ways to improve the profitability of the business following completion of the Proposed Transaction.
My Rewards will seek shareholder approval of the shares to be issued as consideration under the Proposed Transaction for the purposes of ASX Listing Rule 7.1 by way of an additional resolution to be considered at the EGM scheduled to be held on 26 May 2023. An addendum to the Notice of Meeting and Explanatory Memorandum issued on 27 April 2023, containing additional information in respect of the Proposed Transaction, will be sent to shareholders and released to the ASX in due course.
David Vinson, My Rewards’ Executive Chairman, expressed his excitement at the prospect of incorporating the Frankly business into My Rewards’ existing operations. Vinson believes that having an established in-house digital agency, supported by a well-disciplined team, enables My Rewards to efficiently increase the services offered to existing and prospective clients. The acquisition of Frankly allows My Rewards to cultivate additional revenue streams and add to the profitability of the Company.
Angel Medical Systems to Merge with BioPlus Acquisition Corp
Leave a Reply