VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 19, 2016) - Carl Data Solutions Inc. (CSE:CRL)(FRANKFURT:7C5) ("Carl" or the "Company"), a developer of Big-Data-as-a-Service ("BDaaS")-based solutions for data integration and business intelligence, is pleased to announce that it has entered into a non-binding Letter of Intent (the "LOI") to acquire 51% of Vancouver-based StratoCom Solutions Corp. ("StratoCom"), a leader in automated airborne data collection for the utilities sector.
The LOI states that Carl will purchase a number of StratoCom Shares (the "Shares") which, at the closing of the Transaction, will represent 51% of all issued and outstanding securities of StratoCom. In consideration for the purchase of the Shares, Carl will issue an aggregate of 3,500,000 common shares on the closing of the transaction and an additional 1,000,000 common shares if StratoCom achieves sales of CAD$900,000 in the year ended December 31, 2016, an additional 700,000 common shares if StratoCom achieves sales of CAD$1,000,000 in the year ended December 31, 2017 and an additional 700,000 common shares if StratoCom achieves sales of CAD$2,500,000 for the 12 month period ending December 31, 2018.
The LOI provides for the funding of the operations of StratoCom by requiring Carl to supply CAD$500,000 in cash on the closing date, and a further CAD$250,000 within 90 days of the closing date.
The LOI also states that Carl shall have the right to appoint one director to the StratoCom Board of Directors with the goal of assisting StratoCom in bolstering its product development by integrating StratoCom's meter reading technology into Carl's proprietary BDaaS infrastructure.
StratoCom is a privately held company based in Vancouver, Canada that uses aviation to accurately read and securely process data from utility gas, water and electric meters. StratoCom's airborne meter communication system reads and collects data by receiving radio frequencies emitted by meters and re-transmits the information to a network operations center for further processing. StratoCom has seen significant recent sales growth and currently holds a strong order backlog. StratoCom has contracts with major oil and gas as well as power utilities companies throughout western Canada.
The proposed acquisition creates an exciting opportunity for Carl to expand its BDaaS applications within the utilities sector. Integrating StratoCom's airborne platform into Carl's BDaaS infrastructure offers the potential to provide in depth meter information on a dashboard or through a GIS (Geographic Information System) interface for smart meter reporting, infrastructure operations and analysis.
The LOI calls for a definitive agreement to be signed by October 31, 2016 unless the parties agree otherwise.
Greg Johnston, CEO of Carl Data Solutions Inc., commented, "StratoCom will greatly enhance our presence within the utilities sector, specifically oil and gas and power utilities. Consistent with our strategy to acquire proven and complimentary companies, upon completion of the acquisition, the Company would look to leverage StratoCom's technology and customer base to expand our suite of utilities applications to serve this market. We are pleased to be partnering with a company like StratoCom and look forward to starting our work with them this year."
About Carl Data Solutions Inc.
Carl Data Solutions Inc. is focused on providing next generation information collection, storage and analytics solutions for data centric companies. Building on its recent acquisitions, Flow Works Inc., a company that helps its clients analyze and understand all forms of environmental data through a powerful platform of data collection, monitoring, analysis and reporting tools and Extend to Social Media Inc., a company with an application that allows clients to leverage their customers' social networks for referral marketing and analytics, Carl develops applications to work with new cloud-based mass storage services and analytics tools (Big-Data-as-a-Service ("BDaaS")).
Carl is creating a virtually unlimited data storage environment from which informative visual representations of data can be created and new insight generated. Carl's goal is to deliver a comprehensive data management solution for datasets of any size and type from any source. More information can be found at www.CarlSolutions.com.
About StratoCom Solutions Corp.
StratoCom Solutions Corp. is focused on providing an automated airborne data collection system for meter reading, data collection and monitoring. StratoCom's airborne meter communication system includes an airborne platform that communicates with ground-based utility meters using radio frequencies. The airborne platform re-transmits information received from the meters to a network operations center for further processing. StratoCom is one of the only companies employing a network-based data acquisition and recording system through the use of aviation and is licensed to install radio frequency (RF) devices on meters and collect information from the advanced metering infrastructure (AMI) system making it a major player in the utilities sector. More information on StratoCom can be found here: www.StratocomSolutions.com.
On behalf of the Board of Directors:
Greg Johnston, President, Chief Executive Officer, Director
Carl Data Solutions Inc.
The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release
This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking statements in this press release include, but are not limited to, the shares that will be received and the shares and cash that will be issued and paid on the consummation of any definitive agreement that arises out of negotiations based on the LOI, and also given future levels of revenue for StratoCom; the expectation that the acquisition will allow Carl to expand its BDaas applications within the utilities sector; the expectation that integrating StratoCom's airborne platform into Carl's BDaaS infrastructure will offer the potential to provide in depth meter information on a dashboard or through a Geographic Information System interface; and Greg Johnston's expectation that the acquisition will greatly enhance Carl's presence within the utilities sector, specifically oil and gas and power utilities.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: the ability of the Company to establish a market for its services; competitive conditions in the industry; general economic conditions in Canada and globally; the inability to secure additional financing; competition for, among other things, capital and skilled personnel; potential delays or changes in plans with respect to deployment of services or capital expenditures; possibility that government policies or laws may change; technological change; risks related to the Company's competition; the Company's not adequately protecting its intellectual property; interruption or failure of information technology systems; and regulatory risks relating to the Company's business, financings and strategic acquisitions. Any forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.