VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 3, 2014) - LX Ventures Inc. (TSX VENTURE:LXV) ("LXV" or the "Company") is pleased to announce that it has completed the acquisition of Strutta.com Media Inc. ("Strutta"). Strutta is the developer of a social media platform that enables brands to create, launch and manage online campaigns to drive leads, awareness and sales. The acquisition of Strutta will strengthen the Company's presence in the social marketing vertical, and will allow for integration with the Company's existing Mobio platform.
Strutta's industry leading technology connects brands with their target consumers through powerful social promotions. Its do-it-yourself tools allow agencies, brands and developers to easily create and manage interactive contests and sweepstakes. Strutta has powered award-winning promotions for top international agencies, Fortune 500 companies and small businesses including Gatorade, AirBNB, Edelman, Hilton, Crate & Barrel, Red Bull and Shutterfly.
Strutta is a Preferred Facebook Developer that has partnered with some of the most trusted brands, agencies and nonprofits in the world to connect with and grow their audience.
- Have worked with over 12,000 customers
- Have had over 8.5M users create accounts on Strutta
- Recognize 17% of customer base is International and growing
- Experienced 53% YoY organic growth in the last quarter
- SaaS business makes up 48% of revenue
- Current revenue run rate of over $1 million per annum
LXV CEO Mike Edwards added, "The acquisition of Strutta is a key milestone in allowing LX Ventures to monetize our existing Mobio platform. Strutta has proven that its platform can convert social media traffic at dramatically higher rates than traditional online advertising, and when integrated with Mobio's existing social media traffic, will allow both businesses to further accelerate simultaneously."
Under the terms of the transaction, LXV has acquired all of the outstanding share capital of Strutta, and in consideration has issued 3,746,872 common shares and paid $475,000 in cash to the security holders of Strutta. The shares are subject to a 4 month hold period and are subject to further pooling restrictions over the next 18 months. An additional 3,125,000 common shares of LXV are issuable on the achievement of each of three agreed monthly recurring revenue targets, the final one of which requires Strutta to be at recurring revenue run rate of $2,400,000 per annum. Any additional shares that are issued will be subject to further pooling restrictions over a 22 month period.
About LX Ventures
LX Ventures is a publicly traded technology accelerator that acquires, integrates and accelerates high growth technology companies. We are vertically integrated with internal best-in-class practice area teams in sales, marketing, engineering and finance that are leveraged to turn our portfolio companies into industry leading organizations, one by one. We are in the business of building businesses. For further information about LX Ventures, please visit: www.lxventures.com.
Strutta is a social promotions platform that enables brands to create, launch and manage social media campaigns to drive leads, awareness and sales. In addition, our social management dashboard provides brands with rich data on how their customers are interacting with and sharing their story across social channels to encourage ongoing engagement. For further information about Strutta, please visit: www.strutta.com.
ON BEHALF OF THE BOARD
LX VENTURES INC.
Mike Edwards, CEO
CAUTIONARY NOTE: FORWARD-LOOKING STATEMENTS. Other than statements of historical fact, all statements included in this news release, including, without limitation, statements regarding future plans and objectives of LX are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those expected by LX are those risks described herein and from time to time, in the filings made by LX with Canadian securities regulators. Those filings can be found on the Internet at http://www.sedar.com.
Neither the TSX Venture Exchange nor its Regulatory 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.