DealNet Capital Corp.
TSX VENTURE : DLS

DealNet Capital Corp.

September 30, 2015 15:36 ET

DealNet Builds out Engagement and Finance Platforms with Acquisition

TORONTO, ONTARIO--(Marketwired - Sept. 30, 2015) - DealNet Capital Corp. ("DealNet" or the "Company") (TSX VENTURE:DLS), is pleased to announce that it has acquired Gemma Communications ("Gemma") for consideration of up to $7 million. The purchase is structured with an initial cash payment of $2.5 million, deferred payments of up to $1.5 million and a maximum earn out of up to $3 million based on forecasted revenue targets.

Gemma is a leader in Canadian outsourced engagement and marketing solutions for the financial services and telecom sectors with operations in Toronto and Montreal. This acquisition extends DealNet's platform by driving significant service economies of scale that progressively lowers the per transaction cost of originating and servicing its consumer finance business while expanding the operational footprint of DealNet.

As part of the share purchase, DealNet will acquire the employees, operations, systems, offices and other assets of Gemma. This acquisition is expected to double DealNet's engagement revenue in 2016 and positions the company for future transactions in the Fintech space with significant shared servicing capabilities.

"The combined operating platform adds significant economies of scale for origination and servicing of our finance customers and dealers at a progressively lower cost and fortifies the physical and geographical market buildout for large scale national originations", stated Mike Hilmer, CEO of DealNet.

Forward Looking Statements

This press release contains forward-looking statements regarding the Company, its business and the acquisition. The forward-looking statements are based on current expectations and assumptions made by the Company. In some cases, the forward-looking statements can be identified by words or phrases such as "may", "expect", "believe", "anticipates" or the negative of these terms, or other similar expressions intended to identify forward-looking statements, including, among others, statements regarding subsequent integration of the Company, economies of scale and impact of the acquisition on the Company's business and future opportunities. Although the Company believes that those expectations and assumptions are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those anticipated due to a number of factors and risks including general risks regarding the consumer finance industry, economic factors and other factors beyond the control of DealNet. The forward-looking statements contained in this press release are made as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

About DealNet Capital Corp.

DealNet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. DealNet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to them resulting in dealer origination growth.

For additional information please visit www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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