Yappn Corp. ("Yappn" or "Company") (OTCQB:YPPN) a
leader in real-time language technology and translation is pleased
to announce that it has signed a non-binding letter of intent to
acquire key assets of Ortsbo Inc., a division of Intertainment
Media Inc. (TSX-V:INT) (OTC:ITMTF) (FRA:I4T), ("Intertainment")
including US Patent No. 8,983,850 B2, proprietary language services
technology assets, know how related to Ecommerce and Customer Care
and business contracts for a total purchase price of US $17
Million. The terms of the agreement include the assumption of up to
US $1 Million in debt and US $16 Million in equity. The transaction
and terms are subject to the execution of definitive agreements
between the parties and both parties will be required to obtain all
necessary approvals, including shareholder approval, if required.
Under the Services Agreement, as subsequently amended October
24, 2013, between Yappn, Intertainment and Intertainment's Ortsbo
subsidiaries (Ortsbo, Inc., a corporation organized under the laws
of Canada ("Ortsbo Canada"), and Ortsbo USA, Inc., a Delaware
corporation ("Ortsbo USA" and, collectively with Ortsbo Canada,
"Ortsbo"), Yappn was granted the first right of refusal to purchase
the Ortsbo platform and all its assets and operations for a period
of two years from the date of the amendment.
Yappn is negotiating for the purchase of those assets along with
a concurrent preferred share financing of up to a maximum of US $6
Million, supported by its secured line of credit holders, and has
executed a non-binding letter of intent with Winterberry
Investments Inc. a private company, led by Mr. David Berry, to
facilitate this transaction and manage as well as to advise on
Yappn's future capital programs. As part of the transaction,
Intertainment will be seeking to retire certain Ortsbo related
financing obligations and minority shareholder interests.
The additional capital will be used to roll out Yappn's global
Ecommerce expansion programs, enabling online Ecommerce technology
companies, online vendors and development partners to enable
real-time language programs to service a growing global audience.
This acquisition provides Yappn with complete ownership of the
technology and the ability to focus its efforts on the entire suite
of Ecommerce, including marketing and social media, online store
and shopping carts, as well as online customer care in 67
languages. Additionally, all agreements with TranzActive
(Ortsbo operating name), including its current agreement to receive
20% of Yappn's client, Digital Widget Factory's net profit, and the
development of Wonring.com, announced April 8, 2015, will transfer
to Yappn. As previously announced, on December 1, 2014, Yappn
signed an agreement with Digital Widget Factory to create a global
content delivery and management platform and produce up to 220
websites in 2015, with anticipated gross revenues of US $3 Million
and to date, Yappn has delivered 68 websites, well on track to meet
the set expectations of the program.
"We are very excited with the progress of Yappn both as a
technology and as a revenue generating business," said
David Lucatch, Founder and CEO of Yappn Corp. "Our
line of credit team has been very supportive throughout our
development and early revenue stage and the acquisition of the
patent and technologies, that we have previously licensed, coupled
with the agreement to engage with David Berry to lead our capital
markets program, enhances opportunities and potential future value
of Yappn."
The Company continues to expand its efforts with Ecommerce and
communications as it has been testing a number of solutions to
enable single language online storefronts to effectively market,
sell and support Etailing efforts, including the shopping cart, in
multiple languages and is expecting a near term delivery of its
framework for commercial revenue programs.
For more information, please visit www.yappn.com
To learn more about Why Language Matters to a growing global
economy, visit our blog at www.whylanguagematters.com
About Yappn
Yappn is a real-time multilingual company that amplifies brand
and social messaging, expands online commerce and provides customer
support by globalizing these experiences with its proprietary
approach to language. Through its real-time multilingual
amplification platform, Yappn eliminates the language barrier,
allowing the free flow of communications in 67 languages.
Yappn focuses on delivering global reach and efficiencies
without the need of human intervention, making the language
experience immediate through all phases of Ecommerce, online events
and content programming.
Yappn Corp. is publicly traded in the U.S. on the OTCQB – symbol
"YPPN" Intertainment Media Inc. (TSX-V:INT) (OTC:ITMTF) (FRA:I4T),
a leading technology incubator, has a controlling interest in Yappn
Corp.
For more information, please visit http://www.yappn.com or
contact:
David Lucatch, Founder and CEO
info@yappn.com
or
Jeanny So, VP, Corporate Communications
jeanny@yappn.com
T: 1.800.395.9943 x 228
To be added to the news release distribution
list, please email: jeanny@yappn.com with the word "News" on the
subject line.
Forward Looking Information
Legal Notice and Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical fact, and those
preceded by or that include the words "believes," "expects,"
"given," "targets," "intends," "anticipates," "plans," "projects,"
"forecasts" or similar expressions, are "forward-looking
statements." Although Yappn Corp.'s management believes that such
forward-looking statements are reasonable; it cannot guarantee that
such expectations are, or will be, correct. These forward-looking
statements involve a number of risks and uncertainties, which could
cause the Company's future results to differ materially from those
anticipated. Additional information regarding the factors that may
cause actual results to differ materially from these
forward-looking statements is available in the Company's filings
with the SEC including the Current Report on Form 8-K filed on
April 3, 2013 and each subsequently filed Quarterly Report on Form
10-Q and Current Report on Form 8-K. The Company assumes no
obligation to update any of the information contained or referenced
in this press release.