VisualVault Corporation

VisualVault Corporation

September 07, 2012 19:34 ET

CORRECTION FROM SOURCE: VisualVault Corporation Announces Letters of Intent to Enter Into Two Strategic Partnership Agreements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2012) - This Press Release amends a previous press release issued at 530pm EST, September 7, 2012, by incorporating a quotation from Van Potter, CEO, Visual Vault Corporation.


The Board of Directors of VisualVault Corporation (CNSX:VVT) ("VisualVault" or the "Company") is pleased to announce that the Company has entered into two strategic partnerships with existing VisualVault customers; GRM Document Management, and Monument Systems, LLC. Both strategic partnerships have been confirmed by way of executed letters of intent that establish long-term strategic partnerships and which articulate the basis upon which the Company and each partner will develop business and share revenues.

Van Potter, CEO of VisualVault, commented, "The Company's board and management team are very excited about the opportunity to partner with GRM Document Management and Monument Systems, who are both significant players in their respective industries and are important clients of VisualVault. These strategic partnerships highlight management's strategy to achieve the Company's revenue targets over the next three years. Further, we believe these partnerships will become a model of how we form similar relationships with other customer groups, whether they are with existing VisualVault clients or prospective new clients."

The two strategic partnership agreements are summarized as follows;

GRM Document Management:

The Company has entered into a strategic partnership and marketing agreement with GRM Document Management (GRM), which involves, among other things, an arrangement wherein both companies will jointly collaborate on the development of new service offerings and features related to the VisualVault technology in the form of applications that will be sold to both existing and new GRM customers. As an integral part of the letter of intent, both companies have set minimum sales objectives of 40,000 users per month, in aggregate, over a three year sales period. In the event that GRM sources the customer they will earn 60% of the net revenue per user per month after all costs are deducted for both companies. In the event that the Company identifies the customer, VisualVault will earn 60% of the net revenue per user per month after all costs are deducted for both companies. In addition, the Company will acquire and take operational control of GRM's Chinese Data Centre, effective upon closing of the Company's purchase of the Auersoft, LLC assets, scheduled for November 30, 2012. Both companies have agreed to enter into a formal strategic partnership agreement as an integral part of the letter of intent.

Additionally, M Management Inc., an affiliate of GRM, has confirmed its intention to invest a total of $1,000,000 US into the Company over a three year period, such funding to be specifically allocated to product development, and sales and marketing of GRM related programs. The terms of such funding have not yet been finalized.

Monument Systems, LLC:

The Company has also entered into a letter of intent with Monument Systems, LLC, to develop applications for specific use cases in the Healthcare Industry identified by Monument and to develop and implement a sales and marketing strategy with respect to these applications. The Company will bear the costs associated with forms creation, based upon agreed subject matter input, while the sales and marketing strategies will be jointly developed by both companies. All costs borne by both companies will first be deducted, before revenue sharing. Net revenues will be shared on a 50/50 basis. The Company and Monument have agreed that user goals will be set at 20,000 users in year one, 30,000 incremental new users in year two and 30,000 additional new users in year three, all of whom will pay a minimum of $20 per user per month in aggregate, which will be shared on a 50/50 basis. Both companies have agreed to prepare and complete a first stage marketing plan by September 15th.

Management's strategy is to achieve its revenue projections in each of the following three years as a direct function of executing and delivering on identical strategic partnerships with other existing customers groups.

In addition, the Company wishes to announce that as an integral part of its plan to acquire the assets of Auersoft, LLC on or before November 30, 2012, the Company intends to complete a private placement of common shares to finance the acquisition, subject to receipt of all necessary Board and regulatory approvals. Management also believes that in order to secure the financing necessary to close the purchase of Auersoft, LLC assets, that a consolidation of its share capital will be necessary. In this regard, the Company proposes to consolidate its capital on a 2:1 basis concurrently with a post consolidated financing. It is anticipated that the common shares will be issued at a proposed price of $.525 per share on a post consolidated basis. Further details on both the proposed private placement and the proposed consolidation will be provided in a subsequent news release.

Shareholders wishing additional information are invited to contact the Company at 602-865-9356.

About VisualVault Corporation

VisualVault Corporation, (Vancouver, BC and Scottsdale, Arizona) provides secure document management software as a service (SaaS) and compliance cloud services used where security and integrity of unstructured data is needed and compliance requirements are high. VisualVault Corporation markets the VisualVault platform under its Advantive Information Management (AIM) brand. The product is unique in its ability to meet the needs of a wide range of vertical markets including healthcare, securities regulation, manufacturing and government.

The Company intends to build upon current tier-one customers both within North America and internationally.

VisualVault Corporation obtained shareholder approval in December 2011 to acquire 100% of VisualVault Technologies Inc. and with it, the assets of Auersoft LLC of Mesa, Arizona.

The forward-looking information contained in this press release is made as of the date of this press release and except as required by applicable law, the company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires the company to make assumptions that may not materialize or that may not be accurate. This forward-looking information, which includes information relating to the proposed completion of the acquisition of the Auersoft, LLC assets, the proposed financing and the proposed consolidation, is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

Neither the Canadian National Stock Exchange nor its regulation services provider (as that term is defined in the policies of the Canadian National Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information