Troika
Media Group Acquires
Crypto/NFT
Platform Redeeem
- Strategic
acquisition broadens capabilities to offer new services and revenue
streams for TMG clients
- Expected to unlock
significant future growth potential at Redeeem through integration
with TMG's global network of entertainment, sports, gaming,
consumer brands and media
relationships
- Expands TMG's media
and digital entertainment platform into the global cryptocurrency
market
- Redeeem will
bring their crypto payment APIs, mobile payment expertise,
non-fungible token ("NFT") ecosystem, and a community of 50,000
members into TMG's expansive network of digital
brands
- Opportunity to
increase recurring revenue streams for
TMG
Los Angeles, CA -- May
24, 2021 -- InvestorsHub NewsWire -- Troika
Media Group, Inc. (Nasdaq:TRKA)
("TMG" or "Company"), a brand consultancy and
marketing
innovations company
that provides
integrated branding and marketing
solutions for
global brands, today announced
that it
has closed on the acquisition by its wholly-owned subsidiary,
Redeeem Acquisition Corp. ("RAC") of Redeeem, LLC
("Redeeem"), a fintech platform that
empowers businesses to digitize any asset and build their own
blockchain-based payment solutions. RAC has acquired
substantially
all of the assets and approximately $165,000 of specified
liabilities of
Redeeem for $1.21 million in cash
and $10.89 million in common stock of TMG that vest over three
years.
Building on Redeeem's digital blockchain capabilities, TMG intends
to integrate their products across its media services
and will work
with new and existing brands to offer non-fungible token (NFT)
capabilities, crypto payment APIs,
mobile payment expertise, and other
revenue-generating products capable of deploying digital
tokens throughout TMG's expansive
network of brands. TMG is adding 10 new
employees in the purchase of Redeeem, including founder
and CEO Kyle Hill who brings 5+ years of experience in blockchain
and 15+ years of experience in tech startups, having served for eight
years as the founder/CEO of HomeHero, a home care marketplace that
raised $23 million from Social Capital, Graham Holdings, Tencent,
Science and others in 2016 and was acquired in 2018 by William
Yarmuth, former CEO of Almost Family (AFAM). Since its inception in
2018, Redeeem has processed over $10 million in crypto payments and
manages over $1 million a month in trading
volume.
"We believe this is a game-changing transaction for both companies
and achieves unique and complementary strategic objectives of
taking the Company into the new digital era,"
said Robert
Machinist, Troika's Chairman
and CEO.
"The acquisition of Redeeem increases our ability to significantly
grow
revenue and strategic opportunities to enhance the core businesses
of TMG by immediately positioning the Company as a go-to expert
in
the
NFT and crypto space, particularly
in our sports, gaming, and entertainment business, where we will
provide brands new opportunities to foster fandom through NFT
integration.
The combined offering of TMG's existing portfolio of services,
extensive client network, and operational scale with Redeeem's
highly innovative platform, supports our long-term
strategic vision of utilizing transformative technology to create
additional revenue opportunities for the global brands we partner
with every day."
Strategic
Benefits of the Transaction
- Accelerates Redeeem's Growth by
Leveraging TMG's Client Base and Global Scale. TMG
expects to accelerate Redeeem's revenue growth by providing access
to some of the largest global brands in the entertainment, sports,
gaming, and consumer goods sectors.
- New Growth Platform to Diversify and
Expand Revenue Base. TMG expects to benefit from and
utilize Redeeem's expertise in Fintech, NFTs, and mobile payments
to offer value added services to all its current client
base.
- Significantly
Expands Market Opportunity to Enhance Long-Term
Growth. TMG's
existing market presence combined with Redeeem's fast growing
segment is expected to significantly increase the overall long-term
growth for TMG.
- Attractive
and Aligned Business Model Fundamentals. The combined companies
will benefit from a complementary, expanded revenue base with the
goal to grow recurring revenue
streams.
- Experienced
Creative Leadership & Enhanced Team
Capabilities. Redeeem
brings a talented team with proven leadership, which is expected to
be a catalyst to delivering new revenue opportunities for its
clients and further growth for
TMG.
Transaction Details
•
Asset purchase
of Redeeem and associated intellectual property and know
how
•
Total
consideration paid to Redeeem in a combination of cash and stock:
$1.21 million in cash and $10.89 million of Troika common
stock that vests over three years from the Closing and the
assumption by Troika of approximately $165,000 in specified Redeeem
liabilities.
About Troika Media Group
Troika Media Group is an
end-to-end brand solutions company that creates both near-term and
long-term value for global brands in entertainment, sports and
consumer products. Applying emerging technology, data science, and
world-class creative, TMG helps brands deepen engagement with
audiences and fans throughout the consumer journey and builds brand
equity. Clients include Apple, Hulu, Riot Games, Belvedere Vodka,
Unilever, UFC, Peloton, CNN, HBO, ESPN, Wynn Resorts and Casinos,
Tiffany & Co., IMAX, Netflix, Sony and Coca-Cola. For more
information, visit
www.thetmgrp.com
About Redeeem
Redeeem is
the first enterprise-grade fintech platform that empowers
businesses to digitize any asset and build their own
blockchain-based payment solutions. Redeeem offers escrow, liquidity,
custody, research, development, and other digital services to help
build a new, open financial system. Redeeem
provides a fast, safe and easy way to earn 20% discounts or more on
fungible goods using bitcoin. We connect traders from all around
the world using a non-custodial wallet and peer-to-peer exchange
with no banks or fiat currencies. For more information, please
visit
www.redeeem.com
Forward-Looking Statements
Certain statements in this
press release that are not historical facts are forward-looking
statements that reflect management's current expectations,
assumptions, and estimates of future performance and economic
conditions, and involve risks and uncertainties that could cause
actual results to differ materially from those anticipated by the
statements made herein. Forward-looking statements are generally
identifiable by the use of forward-looking terminology such as
"believe," "expects," "may," "looks to," "will," "should," "plan,"
"intend," "on condition," "target," "see," "potential,"
"estimates," "preliminary," or "anticipates" or the negative
thereof or comparable terminology, or by discussion of strategy or
goals or other future events, circumstances, or effects. Moreover,
forward-looking statements in this release include, but are not
limited to, the impact of the current COVID-19 pandemic, which may
limit access to the Company's facilities, customers, management,
support staff, and professional advisors, and to develop and
deliver advanced voice and data communications systems, demand for
the Company's products and services, economic conditions in the
U.S. and worldwide, and the Company's ability to recruit and retain
management, technical, and sales personnel. Further information
relating to factors that may impact the Company's results and
forward-looking statements are disclosed in the Company's filings
with the SEC. The forward-looking statements contained in this
press release are made as of the date of this press release, and
the Company disclaims any intention or obligation, other than
imposed by law, to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Contact:
For Troika Media Group
Kevin Aratari
kevin@troikamedia.com
Investor Relations
TraDigital
IR
Kevin
McGrath
+1-646-418-7002
kevin@tradigitalir.com