TORONTO, CANADA--(Marketwire - Feb. 4, 2013) - Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) announced today that it is in the process of finalizing its sale of itiBiti. The parties have completed due diligence, are completing the final agreements and expect to fully close the transaction shortly. Since the initial announcement on November 28, 2012, itiBiti has experienced in excess of 200% growth in daily user engagement.
Working together, the teams have completed technology integration and are now deploying a number of new system improvements to increase user engagement, platform quality and advertising and sponsorship programs.
Up to five (5) Intertainment employees will now be employed by the new entity. Three (3) Intertainment employees have already made the transition, with up to two (2) more reviewing offers. This directly reduces ongoing Intertainment expenses.
Given the industry experience and team leadership, itiBiti's growth is accelerating. In the past 60 days, itiBiti has experienced significant daily engagement growth averaging in excess of 6 Million user minutes per day. User engagement is directly related to revenue opportunities, including advertising and sponsorship programs.
As previously announced on November 28, 2012, Intertainment has entered into a letter of intent to sell its stake in the itiBiti platform for a total value of $3.5 million to a private technology group which is expected to provide up to $4.5 Million in additional equity value in the form of system development and enhancements. The transaction will take the form of cash, debt conversion as well as equity participation and will provide Intertainment with a 40% equity stake in the operating company. This operating company will be managed by the private technology group owning a 60% stake and will undertake the day to day management, operations and development of the platform including the KNCTR application. The deal also calls for Intertainment to receive one board seat as well as a secured perpetual revenue share of 40% for the first 2 years and declining to 20% annually at year 5 and beyond from the independently managed operation.
Should a future liquidity event occur, where the new enterprise is sold privately or transferred to a public vehicle, Intertainment will receive the initial 30% of the proceeds, up to $5 Million CDN, and 40% of the balance of the value of the transaction.
This agreement represents a significant increase in value as well as a future opportunity with a liquidity event as the initial investment in the itiBiti platform was originally purchased in 2009 for $2 million in a cash and stock transaction.
About Intertainment - www.intertainmentmedia.com
Intertainment is one of Canada's leading technology incubators and is focused on developing, nurturing and investing in both North American and global technologies and companies that provide technology solutions for brands and consumers alike. Intertainment also owns and operates a number of key properties including Ad Taffy, itiBiti (KNCTR), Ortsbo, Deal Frenzy, The Sweet Card and Magnum, with investments in leading edge technologies and social media platforms including theaudience.com. For more information on Intertainment and its properties, please visit www.intertainmentmedia.com.
Intertainment is headquartered in the Toronto, Canada region, with offices in New York, Los Angeles and San Mateo, CA and is listed on the TSX Venture Exchange under the symbol "INT" (TSX VENTURE:INT) and in the US on the OTCQX Market under the symbol "ITMTF". Intertainment is also traded in Europe on the Open Market (Regulated Unofficial Market) of the Frankfurt Exchange through the XETRA trading platform under the symbol "I4T".
Forward Looking Information
All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. Intertainment Media Inc. does not assume any obligation to update any forward looking information contained in this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain forward-looking information.